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Privatization and Firm Performance: An Empirical Study of Selected Privatized Firms in Nigeria Abdullahi, Yahya Zakari; Abdullahi, Hussainatu; Mohammed, Yelwa
Mediterranean Journal of Social Sciences Vol. 3 No. 11 (2012): November 2012 - Special Issue
Publisher : Richtmann Publishing

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Abstract

The aim of this study is to investigate the financial and operational efficiency of the privatized firms in Nigeria. Data forthis study comes from secondary sources; specifically, Fact Book from the Nigerian Stock Exchange, Offer Prospectuses, aswell as published annual reports and financial statements of the privatized firms. Our sampled firms are drawn frommanufacturing, oil marketing, banking and insurance sub-sectors of the Nigerian economy. The period of analysis covers 5 yearsbefore, and 5 years after privatization. To test our predictions, we follow the techniques of Megginson et al. (1994) in order todetermine post privatization performance changes. We calculate the mean value of each variable for each firm over the pre andpost privatization periods, we then use the T- test and the Wilcoxon sign rank test as principal methods of testing for significantchanges in the variables. Results obtained from this study are mixed. Whereas some companies in our sample showimprovements in some indicators, other companies have shown decline in some indicators after privatization. However, in spitethe mixed results, the overall picture shows improvement in profitability for at least half of the firms in our sample. Overall, wemay conclude that our results provide little evidence that privatization has caused significant improvement by all indicators.
Private Sector Creditand Economic Growth Nexus in Nigeria: An Autoregressive Distributed Lag Bound Approach Aliero, Haruna Mohammed; Abdullahi, Yahya Zakari; Adamu, Nasiru
Mediterranean Journal of Social Sciences Vol. 4 No. 1 (2013): January 2013
Publisher : Richtmann Publishing

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Abstract

This paper analyses the relationship between private sector credit and economic growth in Nigeria, using time series data forthe period of thirty-seven (37) years (1974-2010). In analyzing the data the paper used Autoregressive Distributed Lag (ARLD)bound F-test for cointegration. The results indicated that a long run equilibrium relationship exists between private sectorcredit and economic growth, when private sector credit was used as dependent variable. However, causality results indicatethat there is no causal relationship between private sector and economic growth in Nigeria. Therefore the empirical findings ofthis research implied that while “demand following hypothesis” prevailed in the long run relationship between private sectorcredit and economic growth in Nigeria, non-causal impact between private sector and economic growth on the other handindicates the prevalence of the Schumpeterian “independent hypothesis” on the Nigerian economy. Finally, the studyrecommends long-term investment loan to the productive private sector in addition to the need for comprehensive policies andstrong legal framework for easy disbursement and quick recovery of private sector credit.