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Does privatization deliver? Case study of bank x

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Having privatization becoming a more dominant trend in the contemporary society in comparison to nationalization, which started by the United States and the United Kingdom during the early 80's and through out the 90's. The main reasons for privatizing an industry are to increase efficiency and to reduce the cost to the Treasury and the taxpayer. Nationalized industries can suffer from diseconomies of scale such as too much bureaucracy, a slow decision making process and poor labor relations. They also often have a monopoly, and so don't have to be competitive, which may mean staff are unmotivated. If their industries are inefficient, and make a loss, the cost has to be recovered by the state, which means higher taxes for everyone. By privatizing a nationalized industry, the government will no longer be responsible for financing it, and will hope that putting it back into a competitive market will improve efficiency. rnrnThe objectives of study were to investigate whether there is an increase or differences in bank performance after privatized and it's pro and cons.rnrnThe research was conducted by analyzing secondary data that collected by using financial reports of Bank Negara Indonesia and analyzed its financial performance and efficiency performance, through the use of accounting ratios and data envelopment analysis.rnrnThe financial ratio is a ratio of two numbers of reported levels or flows of a company. It may be two financial flows categories divided by each other (profit margin, profit/revenue). It may be a level divided by a financial flow (price/earnings). It may be a flow divided by a level (return on equity or earnings/equity).rnrnThe data envelopment analysis is a non-parametric is a linear programming methodology to measure the efficiency of multiple Decision Maker Units (DMUs) when the production process presents a structure of multiple inputs and outputs.rnrnThe results of the findings were, broken down into two parts, which is before and after privatization and financial crisis respectively. Later, the findings shall be compared within another in conclusion, taking in consideration of the X-factors.rnrnThe result shows that efficiency maximizes shareholders wealth than state owned enterprise.

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Availability

B00076

(wh)

Available

Detail Information

Series Title

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Call Number

76

Publisher

: Swiss German University., 2005

Collation

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Language

English

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Classification

NONE

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Subject(s)

IBA

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