The Impact of Privatization on the Financial Performance of Privatized Enterprises in Sudan (1990-2004): Based on new ownership structure: An empirical study

Abstract

This paper attempts to examine the impact of privatization on the financial performance of privatized enterprises classified according to new ownership structure in Sudan. The paper follows the standard methodology reported in the literature and relies on survey data collected from annual reports of these enterprises. The paper uses a sample of 18 privatized enterprises that were fully or partially privatized during the period 1990 to 2004. Non- parametric statistics Wilcoxon test was used as a technique to analyze the data.

The findings show that there is insignificant increase in the financial performance of enterprises transferred to internal investors and state ownership. However, the enterprises transferred to external investors show insignificant decline in the financial performance. Moreover, significant decline in the performance of enterprises transferred to states and NGOs was documented (at .05 level of significance). The paper concludes that, overall, there was an insignificant improvement in the financial performance of privatized enterprises classified according to new ownership structure. To rectify the situation the paper comes up with some recommendations geared toward improving financial performance of privatized enterprises.