Assessment of Operating and Financial Performance of Privatized Firms in Ethiopia: a Case Study on Dill Edible Oil Factory

Abstract

The study describes the financial and operating performance of Dill Edible Oil Factory by making a comparison of its performance before and after privatization. The study sought to determine whether privatization is truly desirable in Ethiopia and whether the performance of privatized firms lives up to the expectation of government and development agencies. In particular. it tried to determine whether privatized firms increased their profitability, their operating efficiency, their capital expenditure, and their out put. It also examined the effect of privatization on employment, capital structure and dividend policy. To this end, the study compared the performance indicators of Dill Edible Oil Factory for the three year before privatization and the three years after privatization. The study used documentary and unstructured interviews for data collection.