Factors affecting the stock price performance of share issued privatizations
Authors: Boardman A. E.; Laurin C.
Source: Applied Economics, Volume 32, Number 11, 10 September 2000 , pp. 1451-1464(14)
Abstract:Shareholders in many share issued privatizations (SIPs) have enjoyed substantial increases in the value of their investments. This study examines the factors that influence the long-run stock price performance of an international sample of SIPs, focusing on three-year buy and hold returns. After controlling for market-wide changes in stock prices, one finds that the relative size of the company has a negative effect on stock price performance, retained government ownership has a positive effect, the presence of a golden share has a negative effect, initial underpricing has a positive effect, and the timing of the privatization has no effect. Performance also depends on the industry and home country.
Document Type: Research article
Publication date: 2000-09-10