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Do changes in organizational status affect financial performance?
Author(s) -
Parker David,
Hartley Keith
Publication year - 1991
Publication title -
strategic management journal
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 11.035
H-Index - 286
eISSN - 1097-0266
pISSN - 0143-2095
DOI - 10.1002/smj.4250120805
Subject(s) - affect (linguistics) , government (linguistics) , organizational performance , business , set (abstract data type) , finance , public economics , economics , marketing , sociology , computer science , linguistics , philosophy , communication , programming language
In recent years there has been worldwide interest in ‘privatization’ and transferring government department functions to quasi‐autonomous agencies. This paper presents the results of a study of 10 organizations in the U.K. which underwent changes in their organizational status within government or which crossed the public‐private boundary. The focus of the study is the impact of these organizational status changes on financial performance measured using a set of standard financial ratios. These ratios did not provide a consistent set of statistically significant results. Organizational status changes in the direction of privatization do not appear to guarantee improved performance.