Is Privatization of Telecom Operators Socially Desirable?

다국어 초록 (Multilingual Abstract)

This paper compares long-run buy-and-hold returns of privatization initial public offerings(IPO) to those of domestic stock markets and size matched comparable firms of respective countries using a sample of 37 privatized telecom initial public offerings from 35 countries. The evidence indicates that the privatization IPOs significantly outperform their domestic stock markets if the returns are equally-weighted while they do not outperform the markets if value-weighted. While sample firms outperform size matched firms, returns are statistically insignificant. In addition, this paper analyzes the cross-sectional determinants of long-run buy-and- hold returns of privatized telecom shares. The results indicate that the long-run performance of privatized telecom IPOs is moderately related to the proxies of policy uncertainty or systematic risk while the size of the firm and some market wide variables such as the accounting standard, origin of commercial law, and the corporate governance scheme significantly affect the stock performance of privatized telecom shares.

참고문헌 (Reference)

1 Eckbo, B. E, "resolution of the 'new issue puzzle'" Vol. 56 (Vol. 56): 251-291, 2000

2 World Bank, "World Development Report"

3 MegginsonW. L.,, "The long-run return to investors in share issue privatizations" Vol. 29 (Vol. 29): 69-77, 2000

4 Ritter, "The long-run performance of initial public offerings Journal of Finance" 3-27, 1991

5 D'SouzaJ, "The financial and operating performance of Newly Privatized firms in the 1990s" Vol. 54 : 1397-1438, 1999

6 Dewenter, K, "State-owned and privately-owned firms:An empirical analysis of profitabilityleverage, and labour intensity" 320-335, 2001

7 Jones S. L, "Share issue privatizations as financial means to political and economic ends" Vol. 53 : 217-253, 1999

8 Boyland, "Regulation, market structure, and performance on telecommunications" OECD (237) : 2000

9 MikkelsonW.,, "Ownership and operating performance of companies that go public" Vol. 44 : 281-307, 1997

10 Loughran T, "New issue puzzle" Vol. 50 (Vol. 50): 23-51, 1995

11 Brav, A., "Myth or reality? The long-run underperformance of initial public offerings Evidence from venture and non-venture capital-backed companies" Vol. 52, : 1791-1821, 1997

12 MitchellM, "Managerial decisions^long-term stock price performance" 73( (73(): 287-329, 2000

13 Brav. A.,, "Is the abnormal return following equity issuances anomalous?" 1791-1892, 2000

14 Megginson W. L, "From state to market A survey of empirical studies on privatization" Vol. 39, : 321-389, 2001

15 LeeI, "Do firms knowingly sell overpriced equity?" Vol. 52 : 1439-1466, 1997

16 PerottiE, "Credible privatization," Vol. 85 : 847-859, 1995