Financial performance of disinvested central public sector enterprises in India : an empirical study on select dimensions

The objective of this paper is assess the financial performance of disinvested central public sector enterprises (PSEs) in India on the basis of several dimensions on pre and post disinvestment bases over the life span of more than two decades (i.e. 1986-87 to 2009-10); financial performance has been measured on the basis of select profitability, efficiency, liquidity, leverage and productivity ratios. The findings suggest that partial or small amount of disinvestment has not yielded desired results in majority of dimensions; it may be virtually due to variety of problems faced by PSEs even after disinvestment, such as high cost and noncompetitive industrial structure, operational inefficiency due to high governmental interference, environment restrictions (delegation of operational and functional autonomy to the managers through performance contracts) and less proportion of disinvestment. -- efficiency ; financial performance ; leverage ; liquidity ; productivity ; profitability.