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Privatization versus Private Sector Initial Public Offerings in Poland

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  • Wolfgang Aussenegg

    (Vienna University of Technology, Austria)

Abstract

This article compares the characteristics and the price behavior of case-by-case privatization initial public offerings and private sector initial public offerings in Poland over the first nine years after the reopening of the Warsaw Stock Exchange in April 1991. There is evidence that the Polish government is market-oriented, trying to build up reputation for its privatization policy over time by underpricing, selling a high fraction at the initial offer and underpricing more when selling to domestic retail investors. In the long run privatization initial public offerings experience neither an under- nor an overperformance. A lower political influence has no effect on the long-run performance of privatized companies.

Suggested Citation

  • Wolfgang Aussenegg, 2000. "Privatization versus Private Sector Initial Public Offerings in Poland," Multinational Finance Journal, Multinational Finance Journal, vol. 4(1-2), pages 69-99, March-Jun.
    • Handle: RePEc:mfj:journl:v:4:y:2000:i:1-2:p:69-99
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    References listed on IDEAS

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    Cited by:

    1. Jeffry M. Netter & William L. Megginson, 2001. "From State to Market: A Survey of Empirical Studies on Privatization," Journal of Economic Literature, American Economic Association, vol. 39(2), pages 321-389, June.
    2. International Monetary Fund, 2007. "IPO Behavior in GCC Countries: Goody-Two Shoes or Bad-to-the-Bone?," IMF Working Papers 2007/149, International Monetary Fund.
    3. Lizińska Joanna & Czapiewski Leszek, 2019. "Long-Term Equity Performance in Poland – Searching for Answers with the Calendar-Time Portfolio Approach," Folia Oeconomica Stetinensia, Sciendo, vol. 19(1), pages 43-55, June.
    4. Mohammed Omran, 2002. "Initial and Aftermarket Performance of Egyptian Share Issue Privatization," Working Papers 0227, Economic Research Forum, revised 19 Sep 2002.
    5. Małachowski Paweł & Gadowska-dos Santos Dominika, 2021. "What Determines the Success of an IPO? Analysis of IPO Underpricing on the Warsaw Stock Exchange," Central European Economic Journal, Sciendo, vol. 8(55), pages 1-14, January.
    6. Stringham, Edward & Boettke, Peter & Clark, J.R., 2008. "Are regulations the answer for emerging stock markets? Evidence from the Czech Republic and Poland," The Quarterly Review of Economics and Finance, Elsevier, vol. 48(3), pages 541-566, August.
    7. Mihail K. Miletkov, 2014. "A Cure Rather than a Disease: Government Ownership and Minority Shareholder Protection," Multinational Finance Journal, Multinational Finance Journal, vol. 18(1-2), pages 1-41, March - J.
    8. Henna Malik & Malik Muhammad Shehr Yar & Attiya Yasmin Javid, 2017. "New Issues Puzzle: Experience from Karachi Stock Exchange," Working Papers id:12182, eSocialSciences.
    9. Liu, Jianlei & Uchida, Konari & Gao, Ruidong, 2012. "Political connections and the long-term stock performance of Chinese IPOs," Journal of International Financial Markets, Institutions and Money, Elsevier, vol. 22(4), pages 814-833.
    10. Joanna Lizińska & Leszek Czapiewski, 2018. "Towards Economic Corporate Sustainability in Reporting: What Does Earnings Management around Equity Offerings Mean for Long-Term Performance?," Sustainability, MDPI, vol. 10(12), pages 1-23, November.
    11. Al-Hassan, Abdullah & Delgado, Fernando & Omran, Mohammed, 2010. "The under-pricing of IPOs in the Gulf cooperation council countries," Research in International Business and Finance, Elsevier, vol. 24(3), pages 344-360, September.
    12. Meluzin, Tomas & Zinecker, Marek & Lapinska, Justyna, 2014. "Determinants of Initial Public Offerings: The Case of Poland || Factores determinantes de una opción pública de venta (OPV): el caso de Polonia," Revista de Métodos Cuantitativos para la Economía y la Empresa = Journal of Quantitative Methods for Economics and Business Administration, Universidad Pablo de Olavide, Department of Quantitative Methods for Economics and Business Administration, vol. 18(1), pages 5-17, December.
    13. Attiya Yasmin Javid & Henna Malik, 2016. "Performance and capital structure of IPOs in Pakistan from 2000 to 2015," Financial Innovation, Springer;Southwestern University of Finance and Economics, vol. 2(1), pages 1-19, December.
    14. Karanović Goran & Karanović Bisera, 2016. "IPOs Performance Analysis: Evidence from Emerging Markets in the Balkans," Scientific Annals of Economics and Business, Sciendo, vol. 63(3), pages 381-389, November.
    15. Joanna Lizińska & Leszek Czapiewski, 2014. "Performance of Polish IPO Firms: Size and Profitability Effect," Gospodarka Narodowa. The Polish Journal of Economics, Warsaw School of Economics, issue 1, pages 53-71.
    16. Ansgar Belke & Friedrich Schneider, 2003. "Privatization in Austria: Some Theoretical Reasons and First Results About the Privatization Proceeds," Diskussionspapiere aus dem Institut für Volkswirtschaftslehre der Universität Hohenheim 229/2003, Department of Economics, University of Hohenheim, Germany.
    17. George J. Papaioannou & Nickolaos G. Travlos, 2000. "Special Issue on Initial Public Offerings," Multinational Finance Journal, Multinational Finance Journal, vol. 4(1-2), pages 1-4, March-Jun.
    18. Mohammad Kheiry & Sima Golozar & Ali Amiri, 2017. "An Assessment of Valuation Methods of Stock Initial Public offerings on Tehran Stock Exchange," International Journal of Academic Research in Business and Social Sciences, Human Resource Management Academic Research Society, International Journal of Academic Research in Business and Social Sciences, vol. 7(4), pages 466-490, April.
    19. Goran KARANOVIĆ & Bisera KARANOVIĆ, 2016. "IPOs PERFORMANCE ANALYSIS: EVIDENCE FROM EMERGING MARKETS IN THE BALKANS," Scientific Annals of Economics and Business (continues Analele Stiintifice), Alexandru Ioan Cuza University, Faculty of Economics and Business Administration, vol. 63(3), pages 381-389, November.
    20. Jing Chi & Dr. Carol Padgett, 2002. "Short-Run Under Pricing and its Characteristics in Chinese IPO Markets," ICMA Centre Discussion Papers in Finance icma-dp2001-12, Henley Business School, University of Reading, revised Jul 2002.
    21. Friedrich Schneider & Ansgar Belke, 2004. "Privatization in Austria: Some theoretical reasons and performance measures," Economics working papers 2004-04, Department of Economics, Johannes Kepler University Linz, Austria.

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    More about this item

    Keywords

    initial public offerings; long-run performance; privatization; underpricing;
    All these keywords.

    JEL classification:

    • G12 - Financial Economics - - General Financial Markets - - - Asset Pricing; Trading Volume; Bond Interest Rates
    • G18 - Financial Economics - - General Financial Markets - - - Government Policy and Regulation
    • G38 - Financial Economics - - Corporate Finance and Governance - - - Government Policy and Regulation

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