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The political economy of share issue privatization: International evidence

  • Saffar, Walid
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    Using a large sample of 3266 privatization transactions from 100 countries over the period 1977–2006, I test hypotheses on the political underpinnings of the choice of privatization method. After controlling for firm-level characteristics and cross-country legal institutions, I find that the political system's type, tenure, and cohesion explain the choice between privatizing with a share issue or an asset sale. My results are robust to a series of sensitivity tests and suggest that the government's choice of privatization method is politically constrained at different levels.

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    File URL: http://www.sciencedirect.com/science/article/pii/S1042444X13000571
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    Article provided by Elsevier in its journal Journal of Multinational Financial Management.

    Volume (Year): 24 (2014)
    Issue (Month): C ()
    Pages: 1-18

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    Handle: RePEc:eee:mulfin:v:24:y:2014:i:c:p:1-18
    Contact details of provider: Web page: http://www.elsevier.com/locate/mulfin

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