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Title: PUBLIC VERSUS PRIVATE OWNERSHIP AND PERFORMANCE OF INDIAN FIRMS
Authors: Ombir Singh
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Ombir Singh Assistant Professor, Department of Economics, Kurukshetra University, Haryana, India
MLA 8 Singh, Ombir. "PUBLIC VERSUS PRIVATE OWNERSHIP AND PERFORMANCE OF INDIAN FIRMS." Int. j. of Social Science and Economic Research, vol. 4, no. 2, Feb. 2019, pp. 875-886, ijsser.org/more2019.php?id=68. Accessed Feb. 2019. APA Singh, O. (2019, February). PUBLIC VERSUS PRIVATE OWNERSHIP AND PERFORMANCE OF INDIAN FIRMS. Int. j. of Social Science and Economic Research, 4(2), 875-886. Retrieved from ijsser.org/more2019.php?id=68 Chicago Singh, Ombir. "PUBLIC VERSUS PRIVATE OWNERSHIP AND PERFORMANCE OF INDIAN FIRMS." Int. j. of Social Science and Economic Research 4, no. 2 (February 2019), 875-886. Accessed February, 2019. ijsser.org/more2019.php?id=68.
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Abstract: Since 1991, the Government of India started the process of privatization which is based on the argument that private ownership establishes the market for corporate control by allowing the tradability of property rights and therefore improves the quality of management. In 2002 by introducing the Competition Act, the Government has provided full freedom to the private sector to expand and grow. At this background, the paper analyses the impact of public and private ownership on the performance of a firm by using the data of five different industrial categories for the period of ten year, 2006 to 2015. For this purpose, panel data regression (fixed and random effects) models have been applied. From this study, a mixture of evidences has been emerged regarding the impact of ownership structure on profitability. Out of five, in two industries, public sector firms are reported with significantly high profitability against their private counterparts. Private sector firms have significantly high profitability only in one industry. In the remaining two industries, ownership does not have any significant impact on the performance of a firm. Further, the impacts of other environmental factors viz. liquidity, debt financing, and management of the available resources have been analyzed on the profitability of firms.

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