Khartoum University Journal of
Management Studies

OFFICIAL PUBLICATION OF THE SCHOOL OF MANAGEMENT STUDIES, UNIVERSITY OF KHARTOUM
  • Abbreviation: Khartoum Univ. J. Manage. Stud.
  • Language: English
  • ISSN: 1585-8069
  • DOI: 10.5897/KUJMS
  • Start Year: 1994
  • Published Articles: 35

The impact of Privatization on the Financial Performance of Privatizes Enterprises in Sudan (1990-2004): Based on new ownership structure: an empirical study

Zaroug Osman Mohamed
  • Zaroug Osman Mohamed
  • University of Gezira
  • Google Scholar
Omer Ahmed Osman Elmagli
  • Omer Ahmed Osman Elmagli
  • Ministry of High Education and Scientific Research
  • Google Scholar


  •  Received: 01 November 2011
  •  Accepted: 15 December 2011
  •  Published: 31 December 2011

Abstract

This paper attempts to examine the impacts 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 of 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 financial performance of enterprises of 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 state 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 towards improving financial performance of privatized enterprises.