Using a sample of 22 Chilean companies privatized between 1984 and 1989, this paper studies in greater depth the financial effects of privatization reported by Megginson, Nash and Van Randerborgh 1994. In contrast with these authors, we do control our results by market movements in the study period. Our results without market adjustments are quite similar to those reported in the study cited previously: increases in profits, efficiency, investment, employment and dividends. Nevertheless, after adjusting for market movements of the Chilean market, some of these results do not hold: profits diminish or do not change, employment does not change, leverage increases and liquidity does not change.
Keywords:
Privatizations, Chile, Financial effects, Control by market movements
Maquieira V., C., & Zurita L., S. (1996). Privatizations in Chile; efficiency and financial policies. Estudios De Administración, 3(2), 1–36. https://doi.org/10.5354/0719-0816.1996.56709
