Strategies for financing the privatization process with the help of exchange-traded funds

Bahadoran Baghbadorani, Azadeh; Shajari, Hushang; Torabi, Taghi

doi:10.22034/jse.2025.12625.2395

Strategies for financing the privatization process with the help of exchange-traded funds

Document Type : Original Article

Authors

Azadeh Bahadoran Baghbadorani ¹

hushang shajari ²

taghi torabi ³

¹ Department of Industrial Management, SR.C., Islamic Azad University, Tehran, Iran. Email address: azadeh.bahadoranbaghbadorani@iau.ac.ir

² Department of Economics, Faculty of Management and Economics, University of Isfahan, Isfahan, Iran. Email address: h.shajari@ashrafi.ac.ir (Corresponding author)

³ Department of Economics, SR.C., Islamic Azad University, Tehran, Iran. Email address: t-torabi@iau.ac.ir

10.22034/jse.2025.12625.2395

Abstract

The aim of this research is to identify key strategies for the successful implementation of the privatization process using exchange-traded funds. This study is designed with a mixed approach (qualitative-quantitative). In the qualitative phase, data were collected through semi-structured interviews with 20 experts in the field of capital markets, senior managers of companies, financial managers of companies, employees and management of investment funds and analyzed using thematic analysis. In the quantitative phase, interpretive structural modeling was used to extract the hierarchy of strategies and structural equation modeling based on data from 157 questionnaires was used to validate the causal relationships between strategies. The findings show that the privatization process based on exchange-traded funds is a hierarchical system in which the strategies of "systemic feasibility" and "use of international experiences and localization of the model" act as fundamental foundations. These strategies lead stepwise to mid-level strategies such as “designing the optimal functioning of exchange-traded funds”, “outlining a structured privatization process”, “building the capacity of capital market infrastructure”, “preparing and strengthening corporate governance”, and “attracting strategic shareholders”, and finally ending with the final strategy of “managing the supply and use of divestiture proceeds”. This research suggests that privatization funds should be designed taking into account local characteristics, industrial needs and the level of financial literacy of the community, and by attracting expert managers, improving trading systems, increasing information transparency, providing tax incentives and implementing awareness campaigns, the field of broader participation of public investors should be prepared.

Keywords

Stock Exchange

Privatization

Exchange Traded Funds

Financialization

Interpretive Structural Modeling

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