PhD thesis B.M. Redda: Post-privatisation changes

The World Bank and the IMF encouraged privatisation to solve failures of public ownership. It gives new owners the right to appropriate the returns from assets and is presumed to bring innovations and efficiency improvements. Also, improved management control (MCS) practices and better firm performance are predicted to emerge, following the transfer of property rights to new private owners. So far, a great deal of management accounting and control research has been conducted in developed countries to underscore the outcomes of privatisation (i.e., improved MCS and firm performance). Some studies have also been conducted in developing countries covering issues of post privatisation realities, but most of them have failed to examine MCS practices in their wider context. Former studies indicate that the outcomes of privatisation were inconclusive, both in developed and in developing countries. Moreover, the success of privatisation is probably affected by MCS practices and by the internal and external contextual factors.

Findings from three case firms in Eritrea indicated that the MCS practices, firm activities and performance were significantly affected by contextual factors. Factors that played positive role include the capacity and experience and involvement of multinational and local owners. Conversely, factors that had negative effects were mainly government regulations and political uncertainty (war).

Curriculum vitae

Bereket Redda (Eritrea, 1969) completed his MSc in business studies in Groningen and conducted his PhD research at the department of Financial Management under the supervision of prof.dr. J. van der Meer-Kooistra. The ceremony will take place on 4 October 2007 (2.45 pm). (Location: Lutherse Kerk, Haddingestraat 23, Groningen). De title of the thesis is: Post-privatisation changes in management control system practices, firm activities and performance.

Information

Bereket Redda, phone 050-363 70 79, e-mail: b.m.redda rug.nl