Equity divestment and profit rateperformance for sustainable development: a study of central public sector enterprises in India.

Abstract

Disinvestmentcan be described as a wayof actionwhereby the Governmentwithdrawsits equity capital either in part or in fullin publicsector enterprises.From 1991-92, the Government of India undertakethe process of divesting its equity shares in CPSEs. The present studyhas inspectedthe impact of equity divestment on profit rateperformancein terms of ROCE of the CPSEsin India during the period1998-99 to 2017-18.The study concluded that CPSEs have a proficientnegative impact of equity divestment on their overall profit rateperformance during the study period. However, the CPSEs have been able to sustainsatisfactory average ROCEin the competitive market economy.