States as LBO Specialists: evidence from Portugal

Rui Alpalhão and Paulo Alves

MPRA Paper from University Library of Munich, Germany

Abstract: The paper’s purpose is to quantify the performance of a State in its action as a de facto LBO specialist, taking companies private to restructure them and subsequently reselling them in the share market. A sample comprising all the listed companies nationalized in Portugal in 1975 and 1976 that were subsequently privatised through a relisting by means of a share issue is constructed. The returns earned by the Portuguese Republic are computed, comparing the market values of nationalised companies at the time of their privatization with their theoretical value in a non-nationalization scenario. A negative abnormal return for the Portuguese Republic’s investment in shares is found. This negative return is much worse than the ones computed in similar work for France.

Keywords: nationalizations; privatizations; LBO; wealth transfers (search for similar items in EconPapers)
JEL-codes: G38 P16 (search for similar items in EconPapers)
Date: 2013, Revised 2013
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Published in International Journal of Financial Research 2.4(2013): pp. 68-76

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Journal Article: States as LBO Specialists: Evidence from Portugal (2013)
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Persistent link: https://EconPapers.repec.org/RePEc:pra:mprapa:51433

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