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Performance effects of privatisation: an empirical analysis of telecommunication companies in Germany and Romania

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  • Bartels Andreas

    (Edewecht, Germany)

  • Weiss Pablo

    (The Bucharest University of Economic Studies, Bucharest, Romania)

Abstract

The privatisation of state-owned companies is still on the agenda of many governments worldwide. One often stated goal in the privatisation process is the increase of efficiency of the company.The question is which factors do lead to an increase in efficiency and performance of a privatised company. Where are the fundamental differences between public and private companies in this respect? One goal of this paper is also to determine if other or additional variables influence the efficiency of privatised companies in transitional countries - in contrast to developed economies. Based on the research literature, a model was developed that displays all major forces and effects in the privatisation process. Two case studies of telecommunications companies in Germany and Romania are utilised to verify the model. It is expected that privatisation will lead to an increase of efficiency, but that the main thrust derives from competition. Regulation and organisational change will typically also increase the efficiency of the company. The variables “laws and policies” and “economic condition” are of special importance for privatisations in transition economies.

Suggested Citation

  • Bartels Andreas & Weiss Pablo, 2019. "Performance effects of privatisation: an empirical analysis of telecommunication companies in Germany and Romania," HOLISTICA – Journal of Business and Public Administration, Sciendo, vol. 10(2), pages 7-22, August.
    • Handle: RePEc:vrs:hjobpa:v:10:y:2019:i:2:p:7-22:n:1
    DOI: 10.2478/hjbpa-2019-0012
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    References listed on IDEAS

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    1. Alberto Cavaliere & Simona Scabrosetti, 2008. "Privatization And Efficiency: From Principals And Agents To Political Economy," Journal of Economic Surveys, Wiley Blackwell, vol. 22(4), pages 685-710, September.
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    3. Massimo Florio, 2003. "Does privatisation matter? The long-term performance of British Telecom over 40 years," Fiscal Studies, Institute for Fiscal Studies, vol. 24(2), pages 197-234, June.
    4. Jeffry M. Netter & William L. Megginson, 2001. "From State to Market: A Survey of Empirical Studies on Privatization," Journal of Economic Literature, American Economic Association, vol. 39(2), pages 321-389, June.
    5. Stilpon Nestor, 2005. "Falling Between the Cracks: privatisation and corporate governance in the European telecom industry," Corporate Governance: An International Review, Wiley Blackwell, vol. 13(2), pages 137-155, March.
    6. John Vickers & George Yarrow, 1988. "Privatization: An Economic Analysis," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262720116, April.
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    More about this item

    Keywords

    Privatisation; competition; regulation; organisational change; efficiency;
    All these keywords.

    JEL classification:

    • L33 - Industrial Organization - - Nonprofit Organizations and Public Enterprise - - - Comparison of Public and Private Enterprise and Nonprofit Institutions; Privatization; Contracting Out
    • M10 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - General

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