This paper compares the long-run buy-and-hold returns of privatization initial
public offerings(IPOs) to those of the domestic stock markets of respective
countries using a sample of 271 privatization IPOs from 48 countries. The evidence
indicates that the privatization IPOs significantly outperform their domestic stock
markets if the returns are equally-weighted while value-weighted returns show sharp
reduction in performance. However, there are substantial variations in the long-run
performance of privatization IPOs across industries, issuing countries, issue
period, and the origin of commercial law of the country. This paper also analyzes
the cross-sectional determinants of the long-run buy-and-hold returns of
privatization shares. The results indicate that the long-run performance of
privatization IPOs is moderately related to the proxies of policy uncertainty,
consistent with the signaling models of Perotti (1995). Such effects appear to be
overwhelming in the earlier post-IPO period, while the traditional market factors
become more important as the policy uncertainty disappears over time. The
institutional features of the country such as the accounting standard, origin of
commercial law, and corporate governance scheme also affect the return performance
of privatization issues.
학회소식
공지사항
[2003년 제 2차] The Long-Run Stock Performance of Privatization IPO
작성자 : 관리자
조회수 : 815
게시일 :
2003-07-12