Privatization or Public Ownership: Which Model Optimizes the Financial Performance of Moroccan Public Enterprises?

Abstract

Faced with the dilemma of choosing the most effective ownership model to improve corporate financial performance, most researchers advocate for the superior performance of private enterprises over public ones. However, other empirical studies suggest that private ownership or privatization does not systematically lead to the desired level of performance.

In this context, the modernization of public management—drawing inspiration from private sector practices—remains essential, especially in strategic sectors, notably through corporatization and the strengthening of the State’s shareholder function. This article is based on a narrative literature review that aims to compare empirical findings on the performance of public versus private enterprises. It seeks to understand to what extent ownership structure, along with other underlying factors, influences financial performance, and to analyze the Moroccan experience by exploring the role that the State as shareholder can play in the strategic management of public assets to optimize performance.

Keywords: State shareholder, Privatization, Moroccan context, Public ownership, Corporatization.

Classification JEL: H32

Paper type: Theoretical Research