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Determination and Evaluation of Privatization Effects on Financial Performance of Firms in Tehran Stock Exchange (Tse) (Report)

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eBook details

  • Title: Determination and Evaluation of Privatization Effects on Financial Performance of Firms in Tehran Stock Exchange (Tse) (Report)
  • Author : American Journal of Applied Sciences
  • Release Date : January 01, 2010
  • Genre: Engineering,Books,Professional & Technical,
  • Pages : * pages
  • Size : 207 KB

Description

INTRODUCTION Although classic theory stresses consistently on restricting government intervention in economic affairs, great Economic Crisis in late 1920s in industrial countries and their relatively slow movements for coping with the crisis, the effects of socialistic revolution, Second World War and reconstruction thereafter raised much doubt about classic theory and highlighted justifiable motives for government intervention in economic affairs to adopt Keynes theory (Komijani, 1999). During 1950s and 1960s, industrial countries experienced a consistent era together with reasonable economic growth and government's active role via government entities, which resulted in relative success; meanwhile little attention was paid to limited criticism on the government intervention in the economy. In 1970s, the operation of previous policy was continued strictly, but the attempts to boost the economy did not succeed, until economy was suffering from recession and went through a lean time. Theoretical disputes in scientific assembly made it serious to review the extent of government intervention in economy and classic theories took precedence over other rival ones. In early 1980s, appearance of privatization and restriction of government intervention in order to obviate economic problems was at the top of the agenda in England and then industrial countries (Prescott, 1998; Brown et al., 2004). In addition, in developing countries, abandoning dominant policies of government led to government motive to restrict its intervention and create sufficient opportunity for private sector (Weizsacker et al., 1997; Megginson et al., 2003). So, privatization policy has been considered as one of the most important economy-adjusting policies from mid 1980s so far.


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