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Generic Flexibility Evaluation Model Read chapter Read first chapter

2020 | OriginalPaper | Chapter

3. Impact of Disinvestment on Transforming the Performance of Indian Public Enterprises

Authors : Seema Gupta, P. K. Jain, Surendra S. Yadav

Published in: Transforming Organizations Through Flexible Systems Management

Publisher: Springer Singapore

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Abstract

To improve the commercial strength and bridge the fiscal deficit, the government of India has adopted a flexible system to transform the performance of public enterprises through the route of disinvestment in the 1990s. The chapter is intended to determine the financial strength of the government enterprises referred to as central public sector enterprises (CPEs) after disinvestment during more than two decades. The chapter also analyzes the degree of disinvestment effect on the improvement of the disinvested CPEs. The findings suggest that disinvestment has not brought much change in the parameters of profitability, assets turnover, and capacity utilization even after 8 years of disinvestment; an increase is observed only in the parameters of productivity and liquidity. The improved performance in respect of liquidity, leverage, inventory holding period (IHP), and productivity has been noted due to the higher degree of disinvestment in the disinvested CPEs.

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Metadata
Title
Impact of Disinvestment on Transforming the Performance of Indian Public Enterprises
Authors
Seema Gupta
P. K. Jain
Surendra S. Yadav
Copyright Year
2020
Publisher
Springer Singapore
Book
Transforming Organizations Through Flexible Systems Management

Print ISBN: 978-981-13-9639-7

Electronic ISBN: 978-981-13-9640-3

Copyright Year: 2020

DOI
https://doi.org/10.1007/978-981-13-9640-3_3