close

research on ptcl

 research about ptcl Article

Does Privatization Affect Overall performance?

Muhammad Fahad Siddiqi∗, Muhammad Nouman∗∗ &

Ashfaq Ahmad∗∗∗

Abstract

The ownership framework (Private or Public) has strong impact on firm's economical performance. Pakistan Telecommunication Limited (PTCL) was privatized in 2005. This research study

investigates the impact of privatization within the company's

financial performance plus the performance of its inventory. The

parameters " Net Profit Perimeter (NPM)”, " Operating Income Margin (OPM)”, " Returning on Resources (ROA)” and " Revenue per Reveal (EPS)” are used as proxies for financial

performance. On the other hand, the variables " Average Share price (ASP)”, " Volume of shares traded (Vol)”, and " Number of Investments (NoT)” are used as proxies for functionality of inventory. The paired-samples t check for imply difference has become used

intended for comparing the pre and post privatization performance.

Benefits indicate unfavorable but insignificant effect of

privatization on return. On the other hand, the standard Share cost, Volume of stocks and shares traded, and Number of Trades are

absolutely and drastically affected. Research of the economical data reveals decline inside the net earnings margin, operating profit margins, go back on resources and income per discuss after the

privatization; but the influence is minor for all the

variables except the operating income margin.

Keywords: Privatization, Monetary performance, Stock performance.

Advantages

Telecommunication performs a vital role in the economic progress any nation. The ownership structure (Private or Public) has good impact on the firm economic performance. Pakistan Telecommunication Limited (PTCL) was privatized in 2005. As a result of privatization of ∗

Muhammad Fahad Siddiqi. Lecturer, Start of Organization and Managing Sciences (IBMS), Khyber Pakhtunkhwa Agricultural University or college, Peshawar ∗∗

Muhammad Nouman, Lecturer, Start of Organization and Management Sciences (IBMS), Khyber Pakhtunkhwa Agricultural College or university, Peshawar. Email: [email protected] com

∗∗∗

Ashfaq Ahmad. MS Student, Start of Organization and Administration Sciences (IBMS), Khyber Pakhtunkhwa Agricultural University or college Peshawar

Fahad, Nouman & Ashfaq

Truly does Privatization Affect Performance?

PTCL overall economic performance plus the share rates of the PTCL became unpredictable. This study focuses on the dynamic areas of privatization.

Backdrop of the Analyze

As privatization is a global phenomenon, Far eastern Europe and Russia have got started moving their economies from state ownership to promote based system in early 1990's. Such critical restructuring was not attempted previously. The current view of analysts regarding privatization is very real; they argue that privatization need to take place prior to firms will be restructured (Blanchard, Dornbusch, Krugman & High seasons, 1991).

Two arguments support the fast restructuring. Initial, consultants consider that the fast privatization improves a politics, social and economic trouble which comes due to deficit in management of corporate governance. Second, prevalent motive of presidency is to generate revenue, and privatizing organizations are the reasonable system to improve funds (Lipton and Sachs, 1990). To get private owners instead of condition owners means effective and efficient overall economy and quickly dealing with the house rights (Roland, 1994). Newbery (1991) concluded that the major problem of privatization comes as a result of monopolies available in the market; therefore , government authorities have to shatter the monopolies before privatization. According to Roland (1994) privatization is a slow and gradual procedure in to improve political complications and conceivable backlash. While, Summers (1994) believes that due to unproductive rules and regulations of state-owned companies industries and institutional concerns in the countries exist.

Privatization is the key factor that enables market segments to function properly and appropriately. According to Megginson & Kurzer (2001) by last two years most countries of the...

Sources: Ambrose, T., Hennemeyer, P., & Chapon, J. L. (1990). ‘Privatizing

Telecommunications Devices: Business Opportunities in Developing

Beck, T., Cull R. and Jerome A. (2003). ‘Bank Privatization in Nigeria'.

Blanchard, O., Dornbusch, R., Krugman, P., & Summers, T. (1991).

Boubakri, N., and Cosset J. C. (1998). ‘The Economical and Operating

Performance of Newly Privatized Firms: Evidence from Growing

Countries'. Diary of Finance, 53, pp. 1081-1110.

Chaudry, S. Meters., & Kamal, S. (2004). Introduction to Record Theory

2: 6th model (pp

D'Souza J. and Megginson. Watts. L. (1999). ‘The Financial and Operating

Performance of Newly Privatized Firms inside the 1990s'

Fund, 54, pp. 1397- 1438.

Galal, A., & Nauriyal, B. (1995). ‘Regulating Telecoms in

Developing Countries'

Hillside, A., & Abdala, M. (1996). Argentina: The Sequencing of

Privatization and Regulation in Rules, Institutions, and

Ibrahim, M. H. (2003). ‘Macroeconomic Forces and Capital Market

The use: AVAR Analysis for Malaysia'

Kikeri, S., John, 3rd there�s r. N., & Shirley, Meters. M. (1992). ‘Privatization: the

lessons of experience'

Lipton, D., & Sachs, M. (1990). ‘Privatization in Asian Europe: The

Case of Poland'

Megginson, W. L., & Netter, J. M. (2001). ‘From State to advertise: A

Survey of Scientific Studies in Privatization'

Newbery, D. (1991). ‘Reform in Hungary: Sequencing

Privatization'

Restructuring'. The Economical Journal, 104, pp. 1158-68.

Summers, T. (1994). ‘Privatization in East Europe: The truth of

Belgium; Comments and Discussion'

Verbrugge, J. A., Megginson Watts. L., and Lee T. (1999). 'State

Ownership plus the Financial Efficiency of Privatized Banks: An

Wallsten, H. (2001). ‘Telecommunications Investment and Traffic in

Developing Countries: The Effects of Worldwide Settlement Level

Wellenius, N. (1992). ‘Telecommunications: World Financial institution Experience

and Strategy'

 This essay is about the process of mitosis. Which can be the eukaryotic cells means of dividing and multiplying. The from of reproduction over a...

This essay is about the process of mitosis. Which can be the eukaryotic cells means of dividing and multiplying. The from of reproduction over a...

Mitosis The body is made up of millions and millions of building blocks. These foundations are called cellular material. Cells would be the most basic areas of life. Cellular material…...

Read
 Mis Quiz 1 Exploration Paper

Mis Quiz 1 Exploration Paper

MULTIPLE CHOICE. Choose the one particular alternative that best finishes the statement or answers the question. 1) The failure of NASA's initial answer to preventing the area shuttle dropping foam…...

Read