Abnormal Returns in Privatization Public Offerings: The case of Portuguese firms

Carla Vieira and Ana Paula Serra ()
Additional contact information
Carla Vieira: Faculty õf Economics, University of Oporto

Notas Económicas, 2006, issue 23, 6-34

Abstract: This paper provides evidence on abnormal returns of Portuguese privatization public offerings for the period from 1989 to 2001. This study explores the abnormal performance of a comprehensive sample of Portuguese privatization transactions and investigates the determinants of the observed price behavior. We find some evidence of the underpricing phenomenon for privatized offerings but initial returns are low and barely significant. The results show further that privatization IPOs underperform private sector IPOs. In the long run, we observe negative abnormal returns. While in early event months, privatization public offerings yield more negative returns than private sector offerings, this effect is reversed in longer horizon periods. Initial underpricing is thus partially reversed and investors seem to require higher returns in partial privatizations.

JEL-codes: G32 G38 (search for similar items in EconPapers)
Date: 2006
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (4)

Downloads: (external link)
https://impactum-journals.uc.pt/notaseconomicas/article/view/2183-203X_23_1/2860 (application/pdf)

Related works:
Working Paper: Abnormal Returns in Privatization Public Offerings: The Case of Portuguese Firms (2005)
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:gmf:journl:y:2006:i:23:p:6-34

Access Statistics for this article

Notas Económicas is currently edited by Pedro Cerqueira and Carlos Carreira

More articles in Notas Económicas from Faculty of Economics, University of Coimbra Contact information at EDIRC.
Bibliographic data for series maintained by Sofia Antunes ().