Abstract:
Pakistan Telecommunication Limited (PTCL) is one of the most important telecom
industries of Pakistan that is playing a huge part in the monetary advancement of the
nation and gives employment to many individuals. The proprietorship structure (Private
or Public) has solid effect on firm money related performance. Pakistan
Telecommunication Limited (PTCL) was privatized in 2005. This examination study
explores the effect of privatization event on the organization's monetary performance and
the performance of its stock .The study also explores literature on the privatization,
financial performance and also explained the relationship of (pre & post) privatization
event and financial performance. .A numbers of performance pointers are utilized to
gauge the profitability, productivity, capital venture, yield, work and leverages. The
paired sample t test for mean difference has been utilized for contrasting the pre and post
privatization event performance. The study finds that financial and operational
performance of the PTCL is affected negatively due to the privatization. The average
share prices and number of trades were significantly affected though the effect is positive
sometimes. The net profit margin, return on equity and earnings per share ratios shows
decreasing trend in post privatization years. No notable or persuading confirmation is
discovered which propose critical change in monetary and accounting performance
pointers of privatization event on PTCL. At the end we also provide the recommendation
and suggested area for future research.
