Quello che di Speciale c’è nell’acqua

The article offers a review of the economic literature on the effects of corporatization, i.e. the transformation of public enterprises into limited liability companies. The consequences of corporatization on business performance is still a relevant topic of research, considering the intentions of some Italian Municipal Administrations to transform the juridical form of firms active in the water service, currently in the limited liability form, back into “Azienda Speciale”, a public firm whose management enjoys a certain control over the firm’s strategy. The economic theory suggests that the achievement of objectives compatible with the public utilities’ mission is linked not only to the definition of an appropriate legal form but also to the introduction of appropriate governance mechanisms, in accordance with criteria of efficiency and effectiveness. The empirical evidence shows that, in various sectors, corporatiza- tion has a positive effect on business performance, in terms of efficiency, productivity and profitability.