Is Privatization a Panacea? Pre and Post Privatization Analysis of Financial Performance

Abstract

The aim of this study is to examine the impact of privatization of state-owned enterprise on financial performance, employees’ satisfaction and customer satisfaction.  Pakistan Telecommunication Company Limited (PTCL) was taken as the organization for analysis. Five years pre and post-privatization financial figures were analyzed to compare the return on asset, return on equity, earning per share, net profit margin, and dividend payout. To know customer satisfaction level, the questionnaire was personally administered and 102 questionnaires complete from all respects were included for analysis. A semi-structured interview was conducted with 25 employees to determine the satisfaction level of employees. Findings of the study confirmed adverse financial performance after privatization followed by the high level of employees’ dissatisfaction. However, customer satisfaction level was high after privatization