JAYACHITRA, S (2014) AN EMPIRICAL STUDY ON PROFITABILITY PERFORMANCE OF DISINVESTED CENTRAL PUBLIC SECTOR ENTERPRISES OF INDIAN MANUFACTURING SECTOR. ZENITH International Journal of Multidisciplinary Research, 4 (12). pp. 7-29. ISSN 2231-5780

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Abstract

The aim of this paper is to investigate the profitability performance of the disinvested
CPSEs of Indian Manufacturing sector. A sample of 12 firms is drawn from various cognate group
viz., Fertilizer, Heavy Engineering, Medium & Light Engineering, Petroleum ( refinery &
marketing) and Transportation Equipment of Indian CPSEs (Central Public Sector Enterprises). The
period of analysis covers 5 years before and 5 years after disinvestment. To test our predictions, the
technique of Megginson et al. (1994) was followed in order to determine post disinvestment
performance changes. The analysis is based on Ratio analysis, mean, median, CV, CAGR value of
each variable for each firm over pre and post disinvestment periods are calculated. Paired t- test,
Wilcoxon Signed-rank test and proportion test are used as principal methods for testing significant
changes in variables. To test the significant differences among the group Kruskal Wallis test is
applied for the subsample based on approaches to disinvestment (Minority, Majority and complete
Privatization) and based on cognate group (Fertilizer, Heavy Engineering, Medium & Light
Engineering, Petroleum ( refinery & marketing) and Transportation Equipment). To test the
significant changes between the listed and unlisted disinvested CPSEs at Bombay Stock Exchange
(BSE) Mann-Whitney Rank-Sum Test is adopted. Results obtained from this study are mixed.
Whereas some of the sample CPSEs shows improvement in some indicator other sample CPSEs
have shown decline in some indicator after disinvestment. However, in spite of mixed results the
overall picture shows improvement in profitability for at least more than 58 per cent of the sample.

Item Type: Article
Uncontrolled Keywords: Disinvestment; Minority; Majority; Complete Privatization; Cognate group; Listed; Unlisted
Divisions: PSG College of Arts and Science > Department of Commerce
Depositing User: Mr Team Mosys
Date Deposited: 14 Jul 2023 05:37
Last Modified: 14 Jul 2023 05:37
URI: http://ir.psgcas.ac.in/id/eprint/1984

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