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Privatization versus Private Sector Initial Public Offerings in Poland

Multinational Finance Journal, 2000, vol. 4, no. 1&2, pp. 69-99

Abstract:
This article compares the characteristics and the price behavior of case-by-case privatization initial public offerings and private sector initial public offerings in Poland over the first nine years after the reopening of the Warsaw Stock Exchange in April 1991. There is evidence that the Polish government is market-oriented, trying to build up reputation for its privatization policy over time by underpricing, selling a high fraction at the initial offer and underpricing more when selling to domestic retail investors. In the long run privatization initial public offerings experience neither an under- nor an overperformance. A lower political influence has no effect on the long-run performance of privatized companies

Keywords : initial public offerings; long-run performance; privatization; underpricing
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