Impact of privatization on stock returns, evidence of the companies listed on the Tehran Stock Exchange

Nowadays, the privatization of state-owned companies is one of the most important changes in the structure of the capital market. In most countries, privatization as a way to rationalize economic structure, reduce financial pressures government units, improving resource efficiency, ownership, mobilizing financial resources, maximizing the use of existing expertise, strengthen work incentives, reducing bureaucracy, deal with the deficit the balance of payments, revenue and reduce the burden of government services, so that a large number of countries have adopted or carried out this policy. The aim of this study is to investigate the impact of privatization on stock returns which is evidence of listed companies in Tehran Stock Exchange. The period of our research is started from 2010 to 2015 years. The target population is 220 companies to 110 companies during the privatization process and 90 companies are in the process of privatization. In other words, the higher the efficiency of the private equity companies is in the process of privatization.

Keywords:

privatization , public companies , stock returns , rationalize economic structure , ownership