%0 Journal Article
%T The Operating Efficiency and Market Value of Jordanian Privatized Firms: Fixed and Random Effects Analysis
%A DR. Ali Mustafa Abdullah Al Qudah
%J Interdisciplinary Journal of Research in Business
%D 2011
%I Center for Research Promotion
%X This study examines the impact of privatization by using a unique sample of 23 Jordanian privatized firms through the period 1992-2005.This study offers new measures not used in previous studies. In particularly, operating efficiency is measured by turnover ratio (fixed assets turnover) and performance is measured by market value ratio (share market price to share book value). Panel data analysis is employed to determine the impact of privatization on firmsĄŻ efficiency and performance. The results show that privatization has a positive and significant impact on privatized firms operating efficiency and performance as measured by market value ratio. This finding is consistent with most of the existing evidences on the impact of privatization on performance and efficiency. The results also show that strategic partner has a positive and significant impact on privatized firms operating efficiency and market value. In general Liquidity has a positive impact on privatized firmsĄŻ operating efficiency and performance. The study documents that firmsĄŻ specific effect (size) is a significant performance determinant since it influences operating efficiency and performance of privatized firmsĄŻ. The present study also finds that openness of the economy is also a factor that affects privatized firms operating efficiency and performance.
%K privatization
%K strategic partner
%K operating efficiency
%K market value.
%U http://www.idjrb.com/articlepdf/idjrb7n10.pdf