Advanced Search
MyIDEAS: Login

More Households in the Stock Market Through Privatizations? Evidence from Italy


Author Info

  • Giovanni Ferri

    (University of Bari)

  • Cecilia Frale

    (Ministry of Economy and Finance (Government of Italy) and University of Tor Vergata, Rome)

  • Ottavio Ricchi

    (Ministry of Economy and Finance (Government of Italy))


It is believed that privatizations substantially influenced both stock market structure and households’ portfolio decisions throughout the 1990s. However, through which channels did that materialize? Using both Bank of Italy SHIW data and a unique set of surveys made on the occasion of Public Offerings (POs) of state owned companies during 1995-99, we test whether privatizations attracted new households to share investment by increasing potential investors’ knowledge of stock risk/return characteristics via accompanying advertising campaigns. We show that advertising increased households’ awareness of each incoming PO, and so fostered their propensity to subscribe to it. Furthermore, such propensity also grew as households became better informed about past privatizations and perceived an improvement in the institutional setting of financial market, largely related to privatizations. Thus, privatizations expanded households’ share participation in Italy.

Download Info

If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
File URL:
Download Restriction: no

Bibliographic Info

Article provided by GDE (Giornale degli Economisti e Annali di Economia), Bocconi University in its journal Giornale degli Economisti e Annali di Economia.

Volume (Year): 64 (2005)
Issue (Month): 1 (September)
Pages: 93-132

as in new window
Handle: RePEc:gde:journl:gde_v64_n1_p93-132

Contact details of provider:
Postal: via Sarfatti, 25 - 20136 Milano (Italy)
Phone: 0039-02-58365306
Web page:

Order Information:

Related research

Keywords: household portfolio choice; information; privatizations;

Find related papers by JEL classification:


No references listed on IDEAS
You can help add them by filling out this form.



This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.


Access and download statistics


When requesting a correction, please mention this item's handle: RePEc:gde:journl:gde_v64_n1_p93-132. See general information about how to correct material in RePEc.

For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Erika Somma).

If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

If references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

Please note that corrections may take a couple of weeks to filter through the various RePEc services.