재무연구 제 권 호 (2011년 8월)
Asian Review of Financial Research, Vol., No..
pp.509~557
pp.509~557
Does Ownership Matter? Evidences from Operating Performance of Privatization IPOs around the World
Jang Woo Lee Professor, Department of Business, College of Business, Pusan National University, Busan, South Korea
Seung Doo W. Choi Professor, Dept. of Finance, Dongeui University, Busan, South Korea,
William Megginson Professor of Michael F. Price College of Business, University of Oklahoma, Norman, USA,
Recent evidences indicate that privatization leads to enormous benefits to society, with few, if any, undesirable costs. However, stakeholders of privatization seem not to be satisfied with the resulting performance of privatized firms. Using data from 202 privatized firms from 37 countries during the period 1980?2002, we follow the long-run operating performance of privatized companies for up to 10 years and study the costs and benefits of privatization. Privatization is followed by a 1.1- percentage- point increase in the 5-year mean ratio of operating income to sales as firms catch up with the global standard of industry-matched control groups and by a 2.3-percentage-point decrease in the next 5 -year mean ratio. Indeed, the previously documented striking achievements were merely a reflection of the world business cycle, the pace of economic activity in general, and the technological innovations during the last three decades.
Jang Woo Lee
Seung Doo W. Choi
William Megginson
Recent evidences indicate that privatization leads to enormous benefits to society, with few, if any, undesirable costs. However, stakeholders of privatization seem not to be satisfied with the resulting performance of privatized firms. Using data from 202 privatized firms from 37 countries during the period 1980?2002, we follow the long-run operating performance of privatized companies for up to 10 years and study the costs and benefits of privatization. Privatization is followed by a 1.1- percentage- point increase in the 5-year mean ratio of operating income to sales as firms catch up with the global standard of industry-matched control groups and by a 2.3-percentage-point decrease in the next 5 -year mean ratio. Indeed, the previously documented striking achievements were merely a reflection of the world business cycle, the pace of economic activity in general, and the technological innovations during the last three decades.
