The political economy of share issue privatization: International evidence

Walid Saffar

Journal of Multinational Financial Management, 2014, vol. 24, issue C, 1-18

Abstract: 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.

Keywords: Privatization; Control structure; Political institutions (search for similar items in EconPapers)
JEL-codes: G32 G38 (search for similar items in EconPapers)
Date: 2014
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Persistent link: https://EconPapers.repec.org/RePEc:eee:mulfin:v:24:y:2014:i:c:p:1-18

DOI: 10.1016/j.mulfin.2013.06.004

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