Deregulation and Privatisation: Evidence from the Telecommunications Industry in Europe and Implications for Switzerland

Wasserfallen, Walter; Müller, Stefan; Gibson, Robert A.; Bucher, J.B.

doi:10.1007/978-1-349-25875-8_10

Economic Policy in Switzerland 1997

DOI: 10.1007/978-1-349-25875-8_10

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Deregulation and Privatisation: Evidence from the Telecommunications Industry in Europe and Implications for Switzerland

Walter Wasserfallen¹,

Stefan Müller²,

Robert A. Gibson³

et al.

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Cited by 3 publications

(2 citation statements)

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“…In addition to these eight empirical studies, several other papers survey extant research for a region (Ramamurti (1996), McDonald (1993), Bennell (1997), and Molz and Hafsi (1997)), for a country (Caves (1990) and Dyck (1997)), for an industry (Wasserfallen and Müller (1998) and Bortolotti, Fantini, and Siniscalco (1998)), or for the entire developing world (Kikeri, Nellis, and Shirley (1992) and Nellis (1999)). With the exception of the first two U.K. studies discussed above (Martin and Parker (1995) and Newbery and Pollitt (1997)) and the Caves overview piece, all of the country‐/industry‐specific empirical studies and the survey articles strongly support the conclusion that privatization significantly improves the operating and financial performance of divested firms—and does so in a remarkably short time frame after ownership is transferred from state to private hands.…”

mentioning

confidence: 99%

The Financial and Operating Performance of Privatized Firms during the 1990s

D’Souza¹,

Megginson²

1999

The Journal of Finance

485

258

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This study compares the pre-and postprivatization financial and operating performance of 85 companies from 28 industrialized countries that were privatized through public share offerings for the period from 1990 through 1996. We document significant increases in profitability, output, operating efficiency, and dividend payments-and significant decreases in leverage ratios-for our full sample of firms after privatization, and for most subsamples examined. Capital expenditures increase significantly in absolute terms, but not relative to sales. Employment declines, but insignificantly. Combined with results from two previous, directly comparable studies, these findings strongly suggest that privatization yields significant performance improvements. DURING THE PAST TWO DECADES, the privatization of state-owned enterprises has moved from being a radical, almost desperate, policy initiative of the Thatcher government in Britain to being an accepted economic policy for governments of all ideological stripes. According to Gibbon~1998!, $860 billion has been raised by governments worldwide through privatizations, with the bulk of this total coming since 1987, and at least one commentator~Rochẽ 1996!! predicts that no less than $6 trillion will be raised through privatizations over the next two decades. In 1997 alone, sales of public enterprises totaled a record $161 billion worldwide, with more than $110 billion of the total coming during the second half of the year, and 1998's total of almost $140 billion indicates that the pace shows no sign of slackening as we approach a new millennium.

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mentioning

confidence: 99%

The Financial and Operating Performance of Privatized Firms during the 1990s

D’Souza¹,

Megginson²

1999

The Journal of Finance

485

258

View full text Add to dashboard Cite

show abstract

“…In addition to these eight empirical studies, several other papers survey extant research for a region (Ramamurti (1996), McDonald (1993), Bennell (1997, Molz and Hafsi (1997)), country (Caves (1990)), industry (Wasserfallen and Müller (1998)), or for the entire developing world (Kikeri, Nellis, and Shirley (1992)). With the exception of the first two U.K. studies discussed above (Martin and Parker (1995) and Newberry and Pollitt (1997)) and the Caves overview piece, all of the country/industry-specific empirical studies and the survey articles strongly support the conclusion that privatization significantly improves the operating and financial performance of divested firms--and does so in a remarkably short time-frame after ownership is transferred from state to private hands.…”

mentioning

confidence: 99%

From State to Market: A Survey of Empirical Studies on Privatization

2001

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Standard-Nutzungsbedingungen:Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch gespeichert und kopiert werden.Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich machen, vertreiben oder anderweitig nutzen.Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, gelten abweichend von diesen Nutzungsbedingungen die in der dort genannten Lizenz gewährten Nutzungsrechte. This paper was developed with financial support from the SBF Bourse de Paris and the New York Stock Exchange, and the assistance and comments of George Sofianos, Bill Tschirhart, Jean-Claude Cosset, Kathy Dewenter, Ranko Jelic, John Nellis, Rob Nash, Marc Lipson, Harold Mulherin, and Annette Poulsen is gratefully acknowledged. Earlier drafts of the authors' privatization works cited herein have benefited from comments received from participants at the 1993 National Bureau of Economic Research corporate finance conference, the 1994-1998 American Finance Association annual meetings, the 1994 American Economic Association meeting, the 1994 Political Economy Research Center Privatization Forum, the 1995-1998 Financial Management Association annual meetings, the 1995 European Finance Association meeting, the 1997 NYSE Cancun Conference on Global Equity Issuance, and seminars at the Copenhagen Business School, the Norwegian School of Management, the University of Chile, the Federal Reserve Bank of New York, Emory University, the University of Georgia, Florida State University, Virginia Tech, Indiana University, The University of Houston, and Tulane University. All remaining errors are the authors' alone. This study surveys the academic and professional literature examining the privatization of stateowned enterprises (SOEs), with a focus on empirical studies. The paper is written from the perspective of a policy-maker weighing the adoption of a national privatization program, who seeks answers to the following questions: (1) How large an impact have privatization programs actually had thus far on state involvement in different national economies?; (2) Has the decision to privatize been based on dissatisfaction with the economic performance of SOEs, and is there a viable policy alternative to divestment?; (3) Have privatization programs significantly improved the operating and financial performance of the companies divested?; (4) Terms of use: Documents in EconStor mayOnce the decision to privatize is made, how do governments select the appropriate method and sequencing of selling state-owned assets?; (5) How do governments price the SOEs they wish to sell and how do they decide which potential buyers to favor?; and (6) Have investors who purchase the shares of privatized firms experienced positive short and long-term returns?Privatization has been instrumental in reducing state ownership in many countries and had a transforming effect on global stock markets, al...

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Sources of Performance Improvements in Privatized Firms: A Clinical Study of the Global Telecommunications Industry

Bortolotti

D’Souza

Fantini³

et al. 2001

SSRN Journal

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Deregulation and Privatisation: Evidence from the Telecommunications Industry in Europe and Implications for Switzerland

Cited by 3 publications

References 10 publications

The Financial and Operating Performance of Privatized Firms during the 1990s

The Financial and Operating Performance of Privatized Firms during the 1990s

From State to Market: A Survey of Empirical Studies on Privatization

Sources of Performance Improvements in Privatized Firms: A Clinical Study of the Global Telecommunications Industry

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