Effects of Privatization on Performance

Effects of Privatization on Performance This research study investigates the impact of privatization on the Pakistan Telecommunication Company Limited (PTCL) financial performance which is privatize in 2005.The variables Net Profit Margin, Operating Profit Margin, Return on Assets and Earnings per Share and Number of trades of shares are used as representation for financial performance. The paired-samples t test for mean difference has been used for comparing the pre and post privatization performance. Analysis of the financial data shows decline in the net profit margin, operating profit margins, return on assets and earnings per share after the privatization; but the impact is insignificant for all the variables except the operating profit margin. The effects of privatization on employees performance and management remain a potential problem and issue for further research due to shortage of resources and knowledge. Effect of Privatization on Performance Poor performance of many companies and public institutions in general has shown that in principle the government is not a good businessman. In this regard Privatization, a global phenomenon considered as a tool that leads to economic growth, increase in productivity, efficiency in utilization of resources and expansion in output and employment. The rational consumer takes benefits from competition among private firms in the form of better quality services and low prices especially in banking, air travel and telecommunication sectors. Due to rigidity in our culture, Public Sector companies do not become flexible and more dynamic as compared to Private companies. In general, it can be claimed that privatization is a part of a broader economic policy which is referred to as the economic release or connecting to the world economy by some governments. Privatization is the process of changing the conditions of governmental activities so that the major context is fixed but the atmosphere of the sectors changes and the effect of atmosphere and conditions of markets on companies performance is likely to consider private sectors mechanisms Telecommunication plays a vital role in the economic development of any country. PTCL was privatized in 2005. Due to the privatization of PTCL, overall financial performance and the share prices of the PTCL became volatile. This purpose of this study is to study dynamic aspects of privatization and compare the pre and post privatization financial performance of the company. An overview of PTCL In 1947, after independence, Pakistan had an insufficient telecom base. Only 14,000 land lines were there in whole country and only one department of Telephone and Post Telegraph. In 1962 these two departments were alienated as Postal department and Telephone and Telegraph Department (TT). Pakistan started gradually enhancement in telecommunication sector in 1990. The brief history of PTCL is as follows: Telegraph and Postal Department was established in 1947. Telephone and Telegraph Department was established in 1962. Pakistan Telecom Corporation was established in 1990-1991. PTCL was listed in the Karachi Stock Exchange in 1996. Internet and mobile subsidiaries was established in 1998. Policies of Telecom sectors were finalized in 2000. Deregulation policy of Telecom sector was announced in 2003. Objectives of Research This research study aims to examine the effect of firms privatization on the performance of the Pakistan Telecommunication Limited (PTCL). The objectives of the study are as follows: To evaluate impact of privatization on the financial performance of PTCL. To understand whether privatization how much privatization is effective To help policy makers and other authoritative bodies regarding decision making about privatization. Literature Review Memon (2007) argue that privatization and the preparations for privatization are very important to minimize the social costs and dislocations caused by such initiative. Most South Asian countries have come to realize that privatization for the purpose of reducing fiscal deficits has caused them to off-load those enterprises which are loss making first. Such action has not inspired private sector confidence, and has resulted in large-scale worker retrenchment. Privatization is the key factor that enables markets to work properly and appropriately. According to Megginson Netter (2006) from last two decades most countries of the world shifted their firms from state ownership to privatization. In 1999 the revenue of privatization firms was $ 1 trillion around the globe. Given the importance of the subject, a lot of studies have been performed to analyze the impact of privatization in a number of countries. Taghizadeh (2009) compared 12 privatized telecom corporations with 12 non-privatized (governmental) ones regarding their per capita cost of operating, per capita cost to fix damages and per capita wage and costs of labor maintenance and conclude that the costs were lower in privatized centers regarding all three above mentioned domains. A recent study (Farinos et al., 2007) while investigating the companies privatized in Spain through the years 1990-2001 argue that privatization has had a great impact on efficiency, sale income and employment. Warzynski (2003) in his study of 300 Ukrainian firms finds that competition does not have a significant effect on firm performance measured by productivity and profitability while privatization has a marginal positive significant effect on profitability and an insignificant effect on productivity. He points out; however, that competition and privatization might be complementary measures, as he finds that competition increases the performance of privatized firms. Boubakri et al. (2005) study the post privatization corporate governance of firms and show that performance gains are associated with the type of dominant owners. Choi and Hassan (2011) argue that Privatized banks, on average, perform better than established banks, whereas this is not true where we do not consider country differences across privatizations. They conclude that although governance and foreign ownership are significantly correlated with decreased performance deviation of privatized banks relative to the established bank group, banking freedom (regulations) and extensive deposit insurance schemes in respective economies are associated with increased performance deviation. A recent study (Okten Arin, 2006) on the effect of privatization argues privatized firms improve productive efficiency by increasing their capita l and decreasing their labor endowment. But this effect disappears when we control for changes in market structure using a measure for market concentration. Hence, while private ownership has a robust positive effect on productive efficiency, whether gains in productivity will be passed on to consumers in the form of lower prices will depend on the market structure ensuing from privatization. Kerr et al., (2008) studied the privatization process in New Zealand and Australia through which they confirmed that the performance of companies after being privatized has improved greatly and privatization has increased the annual growth of New Zealand companies up to 12% and Australian companies up to 9%. Another study (Sarboland, 2012) conducted in Iran conclude that privatization has increased the overall financial performance of the corporation, however financial (debt) leverage ratios also increase, which reflects the companys poor performance in the years after privatization because in such a situation creditors will have less assurance and, moreover, in the view of lenders the less financial (debt) leverage ratio, the better. Some research studies found average performance after reforms, whereas, some studies found positive effect of reforms. However, most of the literature suggests that there is a significant relation between privatization and efficiency and due to the importance and the role that privatization has in increasing efficiency and optimum use of resources, more research is needed to confirm or reject the findings of previous studies. To do so, this current study has been tried to investigate the relation between privatization and efficiency in PTCL. Methodology The study basically focuses on the impact of Privatization on the financial performance of PTCL. Since the domain is PTCL, financial ratios of years 2000-2004 (before being privatized) and financial ratios of years 2005-2009 (after being privatized) have been analyzed, research population and sample are the same. Information and data needed for this research has been collected from the annual reports of PTCL. Since used data was obtained from company documents and financial records and accounting, the data is considered reliable. For measuring financial performance the following four variables have been used: Operating Profit Margin Net Profit Margin Return On Equity Earnings per share Number of Share trade In this study, to analyze data obtained from documents available in finance department, first, after separating and identifying the data of two periods (i.e., after and before privatization), the paired-samples t test for mean difference has been applied to analyze the data. This test explains volatility and significance of the variables, with the assumptions that the distribution of the variable is normal and that the variance of the variable is same in both set of populations. The test id done with help of Microsoft excel and SPSS. Analysis and Findings Refer to Table.1 in appendix, the shows summary of result of Paired-samples t test for the variable operating profit margin. Mean value of the operating profit margin is lower in the post privatization period. On the other hand, standard deviation is higher in the post privatization period as compared to pre privatization period. It indicates that privatization has negative impact on the net profit margin; moreover, it has also become more volatile after privatization. Whereas, the significant value is less than 0.05 which indicates that significant change has been observed in the operating profit margin after privatization. Refer to Table. 2, 3, 4 in appendix, the result shows summary of result of Paired-samples t test for the variable Net Profit Margin, Return on Equity, and Earning per Share respectively. Results show that all of these three variables have declined after privatization, and have become more volatile. The significance value is greater than 0.05 which indicates that changes in these variables are not statistically significant. Refer to Table. 5 in appendix, the result summarizes result of paired t test for the variable Number of trades. The mean value of the Number of trades is almost double in the post privatization whereas, the standard deviation for the number of trades is high in the post privatization period. P or significant value for the variable Number of Trades is highly significant as it is less than .005 indicating that the number of trades per day is significantly affected due to privatization. Conclusion Based on the results obtained, it was shown that there is a significant effect of privatization on the average number of trades of shares. This effect is being found positive as well. However, Analysis of the financial data shows decline in the financial performance of the company after privatization measured by operating profit margin, net profit margin, return on equity and earnings per share ratio. These entire four variables show decline in the post privatization period but the change is significant only in the variable operating profit margin. Hence we can conclude that privatization of PTCL has not been found analytically favorable. It is recommended, based on the result of the research, the legislative agencies should make appropriate policies to achieve a suitable market for Pakistan. Information clarification, choice of investor and a transparent privatization process should be the top priorities of authoritative bodies in order to make privatization more effective and effic ient. As suggested by Zeitun and Tian (2007) a privatization reform should go gradually and government should provide all necessary social securities to reduce the negative social impact of a firms liquidation. Issues for Future Research Many issues are not covered during the study due to shortage of resources and time. Based on the findings of the current research the following suggestions are recommended for further research: To examine the relation between privatization and management performance. To examine the impact of privatization on employees sense of job security. To examine the failures of financial ratios in decision makings. To examine the analysis of financial ratios in decision makings. To examine the impact of privatization on staffs efficiency.

The Effect of Pollution on Mount Everest

Nepal is the small, one of the poorest country of the world. Yet it is very rich in natural resources and scenic beauty including highest ranges of Himalayas. Nepal is the home of the eight highest mountains out often in the world. Mountaineers, trekkers and skilled professionals regularly visit to scale the Mountains in Nepal, which has increased the number of tourist in Nepal. In the last decade, people's attraction toward the mountaineering has increased a lot, by which number of climbers visiting Mount Everest has also been increased.Due to the increasing umber of climbers in the Everest, pollution in and around the Everest has increased and it needs a special attention to prevent from the pollution. Everest attracts people of all around the world. In the past only few climbers who know well about the mountains used to come but today most of the interested people who have enough economic sources visit Himalayas to climb the mountain. According to Norbu Sherpa, a mountain tourist guide, people come to climb Everest as they want to be famous scaling the tallest mountain in the world (Wawahare).In the early 2000s the number f tourist arriving to Nepal was around 400,000 but in last two years people flowing to Nepal has increased rapidly reaching around 900,000 nearly triple of starting 2000s as per the statistics given by the Nepal Tourism Statistics in 2012 (Ministry of Culture, Tourism and Civil Aviation ). As the numbers of climbers has increased, pollution in the highest portion of the peaks has been increased.Pollution in the Everest includes foods, plastics, cans, gas tanks, papers, climber's equipment, human excreta, and also dead bodies of climbers. According to Norbu Sherpa in the article, â€Å"A Conversation with: Mountain Guide Norbu Sherpa†, if the flow of the climbers is frequent, more and more waste is created (Wawahare). The article â€Å"Everest Maxed Out† published on June 2013 in National Geographic Magazine by Mark Jenkins pro vides information about his climbing on Everest and the flow of climbers he saw near camp Ill and pollution in the Everest.Jenkins says, â€Å"The two standard routes, the Northeast Ridge and the Southeast Ridge, are not only dangerously crowded but also disgustingly polluted, with garbage leaking out of the glaciers and pyramids of human excrement befouling the high camps. And then there are the deaths. † Pollution due to death of climbers happens especially due to certain change in weather and climbers who is less experienced or trained. Despite of being polluted, Everest fascinates and attracts the climbers toward it every year.As the increasing numbers of trekkers and climbers in the Everest has led to the pollution, government should try to clean up all the wastes in the Everest utilizing the revenue they had earned from the tourism industry. Norbu says, the government earnings through tourism has not been utilize in mountains nor for benefit of Sherpas (Wawahare). Gover nment should make strict rules and laws to punish the people who makes pollution in the Everest.If the Climbers did not bring back their all used equipment's and the trash from Everest they should lose their deposit money and Sherpas should be rewarded if they brought wastes to the lower base of Everest. And also government, mountaineering agencies should limit the number of people climbing the mountain in every season or month which will not only helps to control pollution but also maintains the traffic Jams in Everest. A climbers, guides and Sherpas should be provided trainings to handle the severe eather condition in mountain so that deaths in the mountains decrease.Decreasing the number of deaths and limiting the number of climbers on Everest pollution will be controlled and also government needs to be aware about the pollution on Everest and utilize their revenue for reducing pollution in mountains. Everest is one of the main factor that world recognizes Nepal, so every concern ed individual as well as government and agencies should control pollution. Controlling pollution it will not only preserve the beauty of Everest but also more people can have the glory to scale the Everest in future.

Thanksgiving Lesson Plan Acrostic Poem

Are you in need of a quick and easy Thanksgiving lesson plan to share with your students in the week before Thanksgiving? Consider practicing acrostic poetry with your students. Acrostic poetry is great for building vocabulary and exercising creativity.   An acrostic poem uses the letters in a word to begin each line of the poem. All of the lines of the poem relate to or somehow describe the main topic word. Here are a few quick tips to consider. Model the format of acrostic poems with your students. Work together to write a collective acrostic poem on the whiteboard. You can use the sample below.Give your students a Thanksgiving-related word so that they can write their own acrostic poem. Consider: gratitude, thank you, Thanksgiving, thankful, blessings, or grateful. Discuss the meaning of these words and the true meaning of the Thanksgiving holiday.Give your students time to write their acrostic poems. Circulate and offer guidance as needed. Offer help but do not give students any phrases or sentences; let them do that on their own.If you have time, allow the students to illustrate their poems. This project makes a great bulletin board display for November, especially if you do it early in the month! Your students can even give their gratitude poems to family members as a creative way of saying thank you for all they do. Sample Thanksgiving Acrostic Poem Here are a few samples of Thanksgiving acrostic poems. Sample number three is written for someone. Sample No. 1 G - Giving me tasty food to eatR - Reading to me before I go to bedA - Always working hard for our familyT - Treating me sweetlyI - I appreciate you!T - Tucking me into bed at nightU - Understanding me when Im upsetD - Doing the right thingsE - Excellent parents! Sample No. 2 T - urkey time (I love the white meat!)H - oping the weather will stay coolA - untie’s pumpkin pie is my favoriteN -   ine plates around the family dinner tableK - eeping family traditions aliveS - tuffing my tummy with my nanas super stuffingG - iving thanks for my family and friendsI - nviting our elderly neighbors over so they won’t be lonelyV   - egetables that I love are corn and beansI - think I am about to burst from all of the foodN - aps for the babies, grandparents, and all of us!G - ames and laughter throughout the day! Sample No. 3 T - Thank you for alwaysU - Understanding. Thank you for alwaysR - Remembering to beK - Kind, helpful, generous, nice, and respectful ofE - Each other. That is why I am so happy and thankful everyY - Year for everything that you do for me.

Motivation and Reinforcement - 3310 Words

Motivation and Reinforcement Summary: Motivation is the art of getting people to do things or to do things more efficiently or quickly. Knowing what the human behavior will do is of the upmost importance. Some of the principals of theorist Abraham Maslow and Frederick Herzberg will open your eyes up to what really motivate people. Finding out which type of motivation intrinsic or extrinsic, is a building block of how a person gets influenced for better motivation. Knowing this trait is a helpful factor to understanding the personality of the person. There attitude can change or formed by a good or bad frame of reference in individuals views. Only by determining the motivational approach of what sets a person to higher standards is†¦show more content†¦Those external factors can include rewards, recognition, bonuses, promotions, and praise. When thinking in terms of motivating employees, a manager should try to help an employee make the connection between their inner drives to fulfill their personal needs and what that might mean in terms of working hard and smart on the job. When employees identify their own welfare with that of their employer, theyll naturally work harder. You have to look at attitudes and how are they formed, measured and changed? What degree of influence do they exert on behavior? In the assessment of attitude it can be summarized as being, a frame of reference that influences the individuals views or opinions on various topics and situations, and influences their behavior. It is widely accepted, however, that attitudes include both beliefs and values. Beliefs, although considered to be based on the knowledge gained about the world around us, can vary greatly in their importance and influence, and therefore being their resistance to change. For instance, an individuals belief in God is highly influential, not only on its own but also in its effect on many other beliefs held by the individual, whereas a belief that eating late at night may cause indigestion is far less central and influential in its effect. Beliefs, both major and minor, form the cognitive component of attitude structure. Motivation and Reinforcement 5 You are able toShow MoreRelatedPositive Reinforcement And Its Effect On Children1740 Words   |  7 PagesCan positive reinforcement in some way harm children or adolescents through our use of trying to pull out certain desired behaviors or traits within them? Over the past century researchers have struggled to come up with methods to how parents can better manage their children, but there has also been research going on at the same time asking whether or not these methods are actually helping children, or harming them. 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