The effect of the implementation of Article 44 of the constitution on the financial policies of state-owned companies (Case Study: Tehran Oil Refining Company)

With regard to the fact that literature of new public management has come to country’s economic literature since 1990 and in 1384, it got highlighted after the issuing of mega policies of section c of article 44 of constitutional law in order for developing non-governmental sectors via assigning government’s incumbencies. Therefore, this research is aimed at showing how much goals mentioned by new public management has been achieved in terms of performance improvement through privatization of one of important industries of Iran. In this research, 14 financial ratios have been used to measure the impact of policies of article 44 over financial performance of Tehran oil refinery company (Shahid Tondgoyan). The results show that the assigning of this company to private sector doesn’t have a significant effect on its performance during research period. While the main goals of execution of article 44 policies have been: reducing the government’s incumbencies, increasing competitiveness, productivity and efficiency of material, human and technological resources, this research shows the goals of privatization have been underachieved. In spite of assigning 90 % stock of Tehran oil refinery company (Shahid Tondgoyan) to Sahame Edalat (justice stock), It is still managed by government. So, even after its assignment, its organizational restructuring, human resources and typically management body have not undergone any specific change.