JAYACHITRA, S (2015) PERFORMANCE CONSEQUENCES OF DISINVESTMENT ON COGNATE GROUPS OF MANUFACTURING SECTOR IN INDIA. International Journal of Social Science & Interdisciplinary Research, 4 (1). pp. 142-160. ISSN 2277-3630

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Abstract

The study compares the pre- and post disinvestment financial and operating
performance of the selected disinvested Central Public Sector Enterprises (CPSEs) of Indian
Manufacturing sector based on cognate groups after disinvestment. A sample of 12 firms is
drawn from five cognate groups from manufacturing sector viz., Fertilizer, Heavy
Engineering, Medium & Light Engineering, Petroleum (refinery & marketing) and
Transportation Equipment of Indian CPSEs. The period of analysis covers 5 years before and
5 years after disinvestment. Hence, the full sample is partitioned into respective cognate
groups which might lead to difference in the profitability, operating efficiency, output,
employment, solvency and stock indicators 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, Wilcox on Signed-rank test
and sign test are used as principal methods for testing significant changes in variables. To test
the significant differences among the groups Kruskal-Wallis test is applied for the subsample
based on cognate groups is adopted. Based on the results obtained from the study, it is
documented that greater performance improvement for the Heavy Engineering groups of
companies in majority of the performance indicators when compared to the other cognate
groups after disinvestment. However, the performance of Transportation Equipment was very
far from satisfactory after disinvestment. Thus, the empirical analysis revealed that there is no
significant difference among cognate groups after disinvestment

Item Type: Article
Uncontrolled Keywords: Disinvestment; Cognate groups; Profitability; Operating Efficiency; Output; Employment; Solvency; Stock Indicators.
Divisions: PSG College of Arts and Science > Department of Commerce
Depositing User: Mr Team Mosys
Date Deposited: 14 Jul 2023 05:42
Last Modified: 14 Jul 2023 05:42
URI: http://ir.psgcas.ac.in/id/eprint/1985

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