Does Ownership Matter? Comparing the Performance of Public and Private Enterprises in Ghana

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Periodical article

Title:	Does Ownership Matter? Comparing the Performance of Public and Private Enterprises in Ghana
Author:	Bavon, Al
Year:	1998
Periodical:	Journal of Developing Areas
Volume:	33
Issue:	1
Period:	Fall
Pages:	53-72
Language:	English
Geographic term:	Ghana
Subjects:	productivity private enterprises public enterprises privatization Development and Technology Economics and Trade
External links:	https://www.jstor.org/stable/4192831 http://search.proquest.com/pao/docview/1311672916
Abstract:	This paper compares the performance of public and private enterprises in Ghana. It explains variations in firm performance through the use of multivariate methods on a pooled cross-sectional dataset covering the years 1986 through 1995. A model explaining variations in firm performance was constructed to test several hypotheses drawn from the economics and organizational theory perspectives. Two dependent variables, ROA (Return on Assets) and ROS (Return on Sales) - profit margin -, were used in two sets of analyses. Generally, the results obtained by the two models are similar and provide credence to the reality of the marginal effects estimated in the study. Previous research has shown mixed results regarding the superior performance of private versus public enterprises. Overall, this study provides support for the hypothesis linking private ownership to better firm performance, although certain shortcomings due to data limitations and other problems could weaken the generalizability of the results. Notes, ref.