The policy-fit view on the efficiency effects of privatization

As the performance outcome of privatization is prevalently considered a critical dimension of policy efficacy, the empirical research in this field so far has provided policy-makers with rich but inconclusive evidences. Furthermore, many studies comparing the same-firm performance before and after privatization overlook the diverse factors shaping the post-privatization environment. With the ANCOVA models on a sample of 34 privatized entities in Taiwan, this study examines, from the policy-fit view, the efficiency effects of policy measures in support of ownership transfer. Contextual and organizational factors, including market openness, continued state presence on boards, and SOE health, are used to capture the sources of productivity gains of privatization. Implications developed are relevant for the policy design of privatization.