Exploring effective factors on privatization, firm performance and export development: Evidence from steel industry

• Main Authors: Seyed Mohsen Seyedaliakbar, Mohammad Zaripour
• Format: Article
• Language: English
• Published: Growing Science 2016-01-01
• Series: Accounting
• Subjects: Privatization; Enhancing the steel export; Stocks efficiency; Explorative Factor Analysis
• Online Access: http://www.growingscience.com/ac/Vol3/ac_2016_23.pdf

Privatization means establishing a new system based on the market mechanisms and consequently making a change, alteration in different aspects of economy and is a process in which the government can examine the possibility of transferring the duties and facilities to the private sector on any level and if necessary, exerts such transfer. On the other hand, exports in industry sector can be a noticeable point for the economic growth of any country. Enhancing the exports of the steel industry of the country can have a principal role in the economic pursuit of the country’s non-oil products. Such an enhancement brings about a positive effect in the efficiency of the stocks within the financial markets by developing the steel industry. Researchers of this field claim that privatization in the steel industry results in the further development of the steel stock market and exports. This paper presents a comprehensive survey on factors influencing on privatization of the firms in steel industry. The study has designed a questionnaire in Likert scale and distributed it among some experts who worked for Mobarakeh steel producer in Iran. Using principle component analysis, the survey has concluded that export activities were influenced the most by six major factors including creativity, technological limitation, opportunities and challenges, being up to date, customer orientation and financial sanction. Moreover, firm performance was influenced by two major factors of stakeholder’s satisfaction and organizational culture. Finally, two factors of rationalism and market orientation influenced the most on privatization.