A Comparison of companie's performance before and after transfer to the private sector in Iran

Privatization as an important economic policy for economic development and reducing cost of products impacts companies to get rid of inefficient performance of public entities. This research compares companies’ performance before and after transfer to the private sector. Companies that have been transferred to the private sector in 2004 are considered. This year 158 companies have been privatized, but considering the amount of transferred shares, those are included that: 1- Their needed data at least four years before and after the assignment is available. 2- Rates of the shares transferred to the private sector are: * 20 to 50 percent of total shares (group 1). * More than 50 percent of share or any amount of stock that causes control of company (group 2). In addition the research analyzes data and test hypotheses by two coupled statistical (t) test. The result took the 95% of confidence level. The studied parameters of (operating cash ratio to net sales, return of equity and net sale ratio to assets) privatized companies before and after transfer has showed no significant difference.