Studying Effect of Privatization on Application of Management Accounting Tools and Performance of National Iranian Copper Industries Company

One of the ways for achieving economic development is privatization policy, in which governments examine the possibility of transferring their duties and facilities from public to private sectors. Then, in the case of necessity, they implement such a transfer. Given the importance of privatization and increased efficiency of companies, which are among the objectives of privatization policy, this study aimed to examine effects of privatization on the performance and application of management accounting tools in National Iranian Copper Industries Company. Senior and middle managers of National Iranian Copper Industries Company (LLP) constituted the statistical population. This study was conducted in two steps: investigating financial performance and applying management accounting tools before and after privatization. Research hypotheses were analyzed using paired t-test. The results indicated a significant relationship between operating cash flow and sales growth percentage. Also, another significant relationship was observed between application of management accounting tools and privatization. Tools of budgeting, breakeven analysis, profitability analysis of products, and re-engineering had a significant increase in National Iranian Copper Industries Company after privatization.