Share issue privatization and political objectives: do governments make a difference?

Germà Bel

No 56, Working Papers in Economics from Universitat de Barcelona. Espai de Recerca en Economia

Abstract: This paper empirically analyzes the political and economic objectives underlying privatization on the stock market. Particularly, I explain the factors of SIPs underpricing, and analyze if the change of political parties in government play a role on the issue. The paper has two main findings. Fist, larger initial returns occurred in the early stages of privatization. Second, the change of government from left-wing to right-wing did not lead to significantly higher levels of underpricing. My results show that governments are quite pragmatic with respect to underpricing: maximizing proceeds from SIPs shows to be more important than ideological differences between parties in government.

JEL-codes: E62 G32 L32 L33 (search for similar items in EconPapers)
Pages: 0 pages
Date: 1999
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Citations: View citations in EconPapers (1)

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Persistent link: https://EconPapers.repec.org/RePEc:bar:bedcje:199956

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