Study of the effects of privatization of governmental companies Tehran Stock Exchange

Abstract

Devolution of governmental companies to private sector is one of the most important problems in Iranian economy. This research studies the effects of privatization of governmental companies in Iran in Tehran Stock Exchange. Stock return was analyzed by an analytical-experimental method. Data was gathered through financial documents for stocks return of companies in the previous periods, private companies, and governmental companies for 1997-2005. Then non-parametric tests were applied on the data by SPSS software. It was found by statistical analyses that there is not a significant difference between stocks return of private and governmental companies. There is a significant difference between stocks return of private companies before and after privatization. There is a significant difference between stocks return of private companies in the five sub-periods. The most increment was in the first three years and the most decrement was in the fourth year after privatization.