ls privatization the right solution for public companies? AENA's case

Abstract

The objective of this thesis is to analyze the performance of companies that ha ve gone through a process of privatization. The reason behind the privatization of public companies is their need for higher efficiency and better performance. In Spain we have a lot of cases. but this thesis will only focus on one ofthem. AENA. 1 have analyzed AENA beca use it is the most recent and major privatization case that we have in Spain. This thesis will not only analyze the financia! sector of the before mentioned company, but also other factors that can affect their performance, such as the government that owns it. When a company goes through the process of privatization. the results have to be compared and analyzed in the long term. lt is necessary for time to pass in order to see the effect of this major change in the company's performance Therefore, when analyzing AENA in the long run after it was privatized, 1 found that there is a positive correlation between the privatization and its performance. This is because they are in a more competitive market, they can attract more investors to raise the capital and the exposure and expansion the companies can have overseas help them grow exponentially. However, the results of the companies in a competitive market should be followed as a rule to say that private companies perform better than public companies. In this work 1 talk about the inconclusive results depending on the type of market the companies operate at.