Partial Privatization and SIP Stock Price Performance: Evidence from China

摘要：

This paper sets out to determine whether the market of a planned economy can effectively monitor share issue privatization (SIP) firms,by exploring the impact of varying degrees of privatization on the long-run stock price performances of initial SIPs in China. Our results indicate that higher degrees of privatization seem to help mitigate the problem of asymmetric information because SIPs with higher degrees of privatization are found to experience significantly lower underpricing during the first day of trading. We also find that the degree of privatization is positively related to the long-run stock price performances of initial SIPs. Overall,our results support the managerial perspective that privatization introduces managerial discipline within the stock market. Our findings have important implications for the continuing process of privatization of state-owned enterprises (SOEs) in China.

关键词： China Partial privatization Share issue privatization State owned enterprises Stock price performance

作者: Wei-Ju Chen Robin K.Chou Yu Jane Liu

作者单位: Department of Finance at the National Central University,Taiwan; Tel:[phone] Ext:66267 Author for correspondence,Department of Finance at the National Central University,Taiwan Department of Finance at the National Chengchi University,Taiwan; Tel:[phone] Ext:81123

会议类型: 国际会议

会议名称: 2007年中国国际金融年会

会议地点: 成都

会议语种:英文

在线出版日期: 2007-07-09（万方平台首次上网日期，不代表论文的发表时间）