International Journal of Business and Social Science

ISSN 2219-1933 (Print), 2219-6021 (Online) DOI: 10.30845/ijbss

A Study of the Effect of Privatisation on the Financial Performance of the Privatised Companies: A Case Study of Zimbabwe
Elliot Mugamu

The literature on the financial performance of privatised companies in the developed and developing countries and also emerging markets is littered with both success and failure stories. This study which was undertaken to assess the effect of privatisation on the financial performance of privatised companies in Zimbabwe also witnessed similar scenario but with emphasis on improved performances. Data for this research were collected using self-administered questionnaires and documentary analysis. 117 respondents were chosen using the stratified random sampling technique. The study revealed that privatisation resulted in enhancement of company profitability, improvement in company technology and increased employee welfare. However, there was no increase in the market share of the privatised companies. The post-mortem of damaging business practices at one of the privatised companies revealed that a series of strategic mishaps piled up and dragged the company into insolvency leading to its re-nationalisation by Government of Zimbabwe.

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