Evaluating the Performance Public Companies Transferred to the Private Sector as a Result of the Privatization Process in Iran (Case study: Affiliates of a Public Parent Organization)

As a result of the privatization and transfer of management and ownership of public companies to the private sector, it was expected that the efficiency of these companies will increase. This paper considers evaluating the effects of privatization of 52 of 195 companies affiliated to public parent organization. In this paper, we present a conceptual and operational model to evaluate relative efficiency of the companies transferred to the private sector in the years before and after the assignment. Then, the model is used to calculate relative efficiency of 52 companies.
Model used, which uses data envelopment analysis is a nonparametric approach to determine the relative efficiency of decision making units, and has various inputs and outputs.
By using this method, we found that the relative efficiency of 7 of the 52 companies studied reduced compared to pre-assignment period and relative efficiency of other 45 units has improved. This result shows that the privatization process has been successful in industrial companies under study. In order to survey the privatization impact on the efficiency of economic units, the mean equality test two sample hypothesis testing methods were used. Based on to data, at 95 percent confidence interval, it can be said that the privatization processes in industrial plants studied, has been successful.