Evaluation of the Effect of Privatization on Financial Development and Company Growth
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Privatization is the process of assigning priorities to the market mechanism and making them market-oriented. It includes a broad spectrum which one side of it is complete privatization and other side of it restructuring of government-owned enterprises. Therefore, the objective of this study is to evaluate the effect of privatization on financial development and company growth in 5-year period between the years 2013 and 2017 in Tehran Stock Exchange. The research sample consisted of 123 listed companies in the Tehran Stock Exchange. They were selected based on knockout sampling method. This research is an applied study in terms of objective and correlational in terms of the relationship between the variables. The method of research is descriptive-survey and the logic of research implementation is the inductive, and the research data are retrospective quantitative. To examine the hypotheses, Durbin-Watson, Limmer and Hausman tests and panel data regression were used. The results showed that privatization has a significant effect on financial development, and examining the hypotheses showed that privatization has an impact on company growth.
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