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This paper aims to examine whether the mode of privatisation and the subsequent ownership structure affects post‐privatisation performance.

Utilising a theoretically derived sample of two matched telecommunications firms in New Zealand and Australia, and non‐parametric analysis of financial data, the performance of two forms of privatisation are compared: full privatisation via direct sale to foreign anchor investors versus partial privatisation via a domestic share issue restricting foreign ownership.

Concentrated ownership through direct sales to foreign owned anchor investors is not more efficient or profitable, nor does it result in increased capital investment; it does, however, result in higher dividend payouts.

These findings contradict the accepted wisdom and dominant theory in the field that full privatisation outperforms partial privatisation, and that FDI transfers firm‐specific ownership advantages enabling the recipient to outperform domestically owned firms. However, the findings are applicable to the two firms and countries studied and future studies need to extend these to the wider population of privatised firms.

While privatisation will improve organisational performance, the choice of whether to privatise by direct sale to anchor investors and foreign owners versus a partial share issue privatisation and keeping a domestic focus will have post‐privatisation performance implications.

A more nuanced understanding is provided of the performance implications of modes of divestiture and ownership structures in advanced economies.

To compare the profitability and technical efficiency of firms in a monopoly industry, airports, operating with different degrees of market power and under differing regulatory regimes, minimalist in New Zealand and interventionist in Australia.

Unlike previous privatisation studies, this study measures efficiency and profitability separately. Using data envelopment analysis (DEA), the technical efficiency of privatised airports is assessed, and this independent measure is used in regression analyses to determine whether efficiency, regulation or privatisation is related to airport profitability.

For firms with monopolistic characteristics operating under minimalist regulation, profitability is related to market power, not efficiency improvements. For firms operating in a regulated environment, profitability is related to regulation, which constrains market power but does not impede efficiency.

This study is limited by its small sample size and its generalisability due to its single industry and regional focus. However, the findings support assertions that the impact of privatisation cannot be assessed independently of industry structure and regulation.

Policy makers considering SOE privatisation in non‐competitive markets should introduce either competition or regulation if firm efficiency is a desired outcome.

Academics and policy makers should be aware that privatisation and competition are not only complementary, as per the extant literature, but they are essential bedfellows. In the absence of competition, regulation is required to control for market power.

European paper industry has been struggling with margins and profitability for more than decade time period. At typical in markets of west, paper product demand is at long-term decline, mostly driven by continuously increasing internet use. However, in emerging markets demand still exists, and in Europe numerous small markets in east have even some growth available. The paper aims to discuss these issues.

The authors analyse in this research work with longitudinal data (period of 2002-2009) from one large Finnish paper mill and data envelopment analysis (DEA) approach, how distribution efficiency to selected eight East European markets has evolved.

In general distribution efficiency has improved, but this has taken place in step-wise manner rather than being linear year-to-year development (year 2006 found to be the threshold). Reason is mostly in better management of transportation costs, and in particular lower monthly deviation of these costs. It is surprising that case paper mill has been able to manage transportation costs in rapidly increasing energy cost environment so efficiently. Maybe European Union enlargement of 2004 and 2007 has had its effects on distribution efficiency.

The research is limited to the deliveries of one paper mill located in Finland. Also East European markets in the early periods of this study were emerging papers markets, and distribution practices were clearly evolving.

Based on the study East European paper market distribution should give more attention on transportation cost control, and trying to find solutions to minimize it with low monthly fluctuation.

Very few studies exist from East European distribution issues, and particularly that of paper industry. Also used quantitative method of DEA is relatively new in this context and gives valuable insights for the distribution efficiency development.