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Privatisation Initial Public Offerings: the Polish Experience
Author(s) -
Jelic Ranko,
Briston Richard
Publication year - 2003
Publication title -
european financial management
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.311
H-Index - 64
eISSN - 1468-036X
pISSN - 1354-7798
DOI - 10.1111/1468-036x.00232
Subject(s) - initial public offering , listing (finance) , margin (machine learning) , government (linguistics) , business , private sector , public sector , accounting , monetary economics , financial system , economics , finance , economy , economic growth , linguistics , philosophy , machine learning , computer science
The Polish government has preferred gradual direct sales to privatisation initial public offerings (PIPOs) by a 2.8 to 1 margin. Evidence suggests that the government has attempted to manage the timing of PIPOs. We, however, find no evidence of underpricing of PIPOs to a greater degree than that found for issues in the private sector. Both domestic and international investors in PIPOs earned predominantly positive buy‐and‐hold returns up to 36 months after listing. The difference between PIPOs and private sector IPOs average returns is statistically significant only for international investors.