Do Privatization IPOs Outperform in the Long Run?

Seung‐Doo Choi, Inmoo Lee and William Megginson

Financial Management, 2010, vol. 39, issue 1, 153-185

Abstract: This paper investigates the long‐run stock returns of privatization initial public offering (IPO) firms using a sample of 241 privatization IPOs from 42 countries during the period 1981‐2003. We compare one‐, three‐, and five‐year holding period returns of privatization IPOs to those of the domestic stock market indices and to size and size‐ and book‐to‐market equity ratio (BM)‐matched firms from the same countries. Consistent with previous studies, we find that privatization IPOs significantly outperform their domestic stock markets in the long run. However, they show less consistent abnormal long‐term stock performance relative to their size or size‐ and BM‐matched benchmark firms.

Date: 2010
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (12)

Downloads: (external link)
https://doi.org/10.1111/j.1755-053X.2010.01069.x

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:bla:finmgt:v:39:y:2010:i:1:p:153-185

Ordering information: This journal article can be ordered from
http://www.blackwell ... bs.asp?ref=0046-3892

Access Statistics for this article

Financial Management is currently edited by William G. Christie

More articles in Financial Management from Financial Management Association International Contact information at EDIRC.
Bibliographic data for series maintained by Wiley Content Delivery ().