The Short- And Long-Term Performance of Privatization Initial Public Offerings in Europe

Hassan OBEID, Haykel Hamdi, Duc Khuong Nguyen

This article investigates the return behaviorof privatization initial public offerings (PIPOs) in Europe over both theshort- and long-run horizons. Using data from a sample of 162 PIPOs over theperiod 1986-2008, we show that European PIPOs outperform, in terms ofrisk-adjusted abnormal returns, a benchmark market index and a portfoliocomposed of 162 European private IPOs, regardless of the horizon of analysis.Our results are important for both investors and policymakers with respect totheir investment and privatization decisions, and also allow a betterunderstanding of the financial performance behavior of the privatizedstate-owned enterprises.

Publication type: 
Scientific Article
Date de parution: 
Journal of Applied Business Research