Privatization and financial performance: Evidence from Indonesia
Khajar I., Hersugondo H., Udin U.
Abstract
The main purpose of this study is to investigate the realtionship between privatization of state-owned enterprises (SOEs) and financial performance. Net profit margin (NPM) is used to assess the efficiency level whereas return on asset (ROA) and return on equity (ROE) are used to assess the level of profitability for financial performance evaluation. Based on purposive sampling, 19 SOEs are obtained as the sample. The results showed NPM and ROA decreased significantly after the privatization. In conclusion, SOEs in Indonesia has not been realized perfectly.
References 10
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