States as LBO Specialists: evidence from Portugal
AbstractThe paper’s purpose is to quantify the performance of a State in its action as a de facto LBO specialist, taking companies private to restructure them and subsequently reselling them in the share market. A sample comprising all the listed companies nationalized in Portugal in 1975 and 1976 that were subsequently privatised through a relisting by means of a share issue is constructed. The returns earned by the Portuguese Republic are computed, comparing the market values of nationalised companies at the time of their privatization with their theoretical value in a non-nationalization scenario. A negative abnormal return for the Portuguese Republic’s investment in shares is found. This negative return is much worse than the ones computed in similar work for France.
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Bibliographic InfoPaper provided by University Library of Munich, Germany in its series MPRA Paper with number 51433.
Date of creation: 2013
Date of revision: 2013
Publication status: Published in International Journal of Financial Research 2.4(2013): pp. 68-76
nationalizations; privatizations; LBO; wealth transfers;
Find related papers by JEL classification:
- G38 - Financial Economics - - Corporate Finance and Governance - - - Government Policy and Regulation
- P16 - Economic Systems - - Capitalist Systems - - - Political Economy of Capitalism
This paper has been announced in the following NEP Reports:
- NEP-ALL-2013-11-22 (All new papers)
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