IDEAS home Printed from https://ideas.repec.org/a/taf/applec/v32y2000i11p1451-1464.html

Factors affecting the stock price performance of share issued privatizations

Author

Listed:
  • Anthony Boardman
  • Claude Laurin

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.

Suggested Citation

  • Anthony Boardman & Claude Laurin, 2000. "Factors affecting the stock price performance of share issued privatizations," Applied Economics, Taylor & Francis Journals, vol. 32(11), pages 1451-1464.
    • Handle: RePEc:taf:applec:v:32:y:2000:i:11:p:1451-1464
    DOI: 10.1080/00036840050151520
    as

    Download full text from publisher

    File URL: http://www.tandfonline.com/doi/abs/10.1080/00036840050151520
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: https://libkey.io/10.1080/00036840050151520?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to

    for a different version of it.

    References listed on IDEAS

    as
    1. Mark Armstrong & Simon Cowan & John Vickers, 1994. "Regulatory Reform: Economic Analysis and British Experience," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262510790, December.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    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. Mohammed Omran, 2002. "Initial and Aftermarket Performance of Egyptian Share Issue Privatization," Working Papers 0227, Economic Research Forum, revised 19 Sep 2002.
    3. Richard Disney & Christopher J. Ellis & Bulent Nomer, 2005. "Privatization and Strategic Monitoring with Gaussian Priors," Public Finance Review, , vol. 33(3), pages 318-342, May.
    4. Carla Vieira & Ana Paula Serra, 2006. "Abnormal Returns in Privatization Public Offerings: The case of Portuguese firms," Notas Económicas, Faculty of Economics, University of Coimbra, issue 23, pages 6-34, June.
    5. Feng Xie & Jing Chi & Jing Liao, 2016. "From share issue privatisation to non-tradable share reform: a review of privatisation in China," Asian-Pacific Economic Literature, The Crawford School, The Australian National University, vol. 30(2), pages 90-104, November.
    6. Seung‐Doo Choi & Inmoo Lee & William Megginson, 2010. "Do Privatization IPOs Outperform in the Long Run?," Financial Management, Financial Management Association International, vol. 39(1), pages 153-185, March.
    7. Goodell, John & Li, Mingsheng & Liu, Desheng, 2021. "Price informativeness and state-owned enterprises: Considering their heterogeneity," International Review of Financial Analysis, Elsevier, vol. 76(C).
    8. Farinos, Jose E. & Garcia, C. Jose & Ibanez, Ana Ma, 2007. "Operating and stock market performance of state-owned enterprise privatizations: The Spanish experience," International Review of Financial Analysis, Elsevier, vol. 16(4), pages 367-389.
    9. Boardman, Anthony E. & Vining, Aidan R. & Weimer, David L., 2016. "The long-run effects of privatization on productivity: Evidence from Canada," Journal of Policy Modeling, Elsevier, vol. 38(6), pages 1001-1017.
    10. Tomasz P. Bednarczyk & Dirk Schiereck & Hardrik N. Walter, 2010. "Cross-border acquisitions and shareholder wealth: Evidence from the energy and industry in Central and Eastern Europe," Journal of East European Management Studies, Nomos Verlagsgesellschaft mbH & Co. KG, vol. 15(2), pages 106-127.
    11. Bilei Zhou & Jie (Michael) Guo & Jun Hua & Angelos J. Doukas, 2015. "Does State Ownership Drive M&A Performance? Evidence from China," European Financial Management, European Financial Management Association, vol. 21(1), pages 79-105, January.
    12. Fegheh Majidi, Ali & Mohammadi, Ahmad & Nanvay Sabegh, Behnaz, 2017. "An Investigation of Convergence Hypothesis of Price Index in Asian Stock Markets," Journal of Money and Economy, Monetary and Banking Research Institute, Central Bank of the Islamic Republic of Iran, vol. 12(1), pages 73-88, January.
    13. Amiruddin BIN MUHAMED & Rebecca STRÄTLING & Aly SALAMA, 2014. "The Impact Of Government Investment Organizations In Malaysia On The Performance Of Their Portfolio Companies," Annals of Public and Cooperative Economics, Wiley Blackwell, vol. 85(3), pages 453-473, September.
    14. Feng, Fang & Sun, Qian & Tong, Wilson H. S., 2004. "Do government-linked companies underperform?," Journal of Banking & Finance, Elsevier, vol. 28(10), pages 2461-2492, October.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Daron Acemoglu & Amy Finkelstein, 2008. "Input and Technology Choices in Regulated Industries: Evidence from the Health Care Sector," Journal of Political Economy, University of Chicago Press, vol. 116(5), pages 837-880, October.
    2. Inter-American Development Bank (IDB), 1999. "Spilled Water: Institutional Commitment in the Provision of Water Services," IDB Publications (Books), Inter-American Development Bank, number 40158 edited by William D. Savedoff & Pablo T. Spiller, February.
    3. Torsten Steinrücken & Sebastian Jaenichen, 2009. "Preisregulierung zum Schutz der Verbraucher: Wirkungen auf Werbung und Wohlfahrt," Vierteljahrshefte zur Wirtschaftsforschung / Quarterly Journal of Economic Research, DIW Berlin, German Institute for Economic Research, vol. 78(3), pages 188-201.
    4. Boone, Jan, 2003. "Optimal Competition: A Benchmark for Competition Policy," CEPR Discussion Papers 3766, Centre for Economic Policy Research.
    5. Matthias Finger & Rolf W. Künneke (ed.), 2011. "International Handbook of Network Industries," Books, Edward Elgar Publishing, number 12961.
    6. Shiji Gao & Yan Wan, 2013. "Market, regulation and state-building in China," Chapters, in: Michael Faure & Xinzhu Zhang (ed.), The Chinese Anti-Monopoly Law, chapter 4, pages 167-193, Edward Elgar Publishing.
    7. David S. Evans & Richard Schmalensee, 2005. "The economics of interchange fees and their regulation : an overview," Proceedings – Payments System Research Conferences, Federal Reserve Bank of Kansas City, issue May, pages 73-120.
    8. Ugaz, Cecilia, 2001. "A Public Goods Approach to Regulation of Utilities," WIDER Working Paper Series 009, World Institute for Development Economic Research (UNU-WIDER).
    9. Martín Rossi, 2015. "Using Labor Productivity Change Estimates as an Input for X-Factors in Price-Cap Regulation," Working Papers 118, Universidad de San Andres, Departamento de Economia, revised Feb 2015.
    10. Marques, Rui Cunha & Berg, Sanford V, 2010. "Revisiting the strengths and limitations of regulatory contracts in infrastructure industries," MPRA Paper 32890, University Library of Munich, Germany.
    11. Scialà, Antonio & Stroffolini, Francesca, 2024. "The economics of regional railway regulation under vertical separation," Economics of Transportation, Elsevier, vol. 37(C).
    12. Makoto TANAKA, 2005. "Optimal Transmission Capacity under Nodal Pricing and Incentive Regulation for Transco," Discussion papers 05021, Research Institute of Economy, Trade and Industry (RIETI).
    13. Luis R. Boscán, 2020. "European Union retail electricity markets in the Green Transition: The quest for adequate design," Wiley Interdisciplinary Reviews: Energy and Environment, Wiley Blackwell, vol. 9(1), January.
    14. Frank A. Wolak, 2000. "Market Design and Price Behavior in Restructured Electricity Markets: An International Comparison," NBER Chapters, in: Deregulation and Interdependence in the Asia-Pacific Region, pages 79-137, National Bureau of Economic Research, Inc.
    15. Fiel & Fiel (ed.), 1999. "La Regulación de la Competencia y de los Servicios Públicos," Books at FIEL, FIEL, edition 1, volume 1, number 0399.
    16. repec:aen:journl:ej36-4-egerer is not listed on IDEAS
    17. Faure-Grimaud, Antoine & Reiche, Sönje Kerrin, 2003. "Dynamic Yardstick Regulation," CEPR Discussion Papers 4035, Centre for Economic Policy Research.
    18. Carlos Pombo & Manuel Ramirez, 2002. "Privatization in Colombia: a plant performance analysis," Borradores de Investigación 3377, Universidad del Rosario.
    19. David E. M. Sappington & Dennis L. Weisman, 2024. "40 Years of Incentive Regulation: What Have We Learned, and What Questions Remain?," Review of Industrial Organization, Springer;The Industrial Organization Society, vol. 65(2), pages 361-373, September.
    20. Nicholas Economides, 1997. "The Economics of Networks," Brazilian Electronic Journal of Economics, Department of Economics, Universidade Federal de Pernambuco, vol. 1(0), December.
    21. Ioannis N. Kessides, 2005. "The Challenges of Infrastructure Privatisation," ifo DICE Report, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, vol. 3(01), pages 19-25, April.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:taf:applec:v:32:y:2000:i:11:p:1451-1464. See general information about how to correct material in RePEc.

    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 CitEc recognized a bibliographic reference but did not link an item in RePEc 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 RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Chris Longhurst (email available below). General contact details of provider: http://www.tandfonline.com/RAEC20 .

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

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.