188 research outputs found
From State to Market: A Survey of Empirical Studies on Privatization
Get PDFThis study surveys the academic and professional literature examining the privatisation of state-owned enterprises (SOEs), with a focus on empirical studies. Privatisation has been instrumental in reducing state ownership in many countries and had a transforming effect on global stock markets, although the role of SOEs in many other countries is similar to what it was two decades ago. Countries have adopted large-scale privatisation programs primarily for two reasons: first, the conclusive evidence that privately-owned firms outperform SOEs and, second, the empirical evidence clearly shows that privatisation significantly (often dramatically) improves the operating and financial performance of divested firms. Governments can also raise significant revenues by selling SOEs. While the choice between privatisation via public share offering versus through asset sales is still imperfectly understood, factors such as firm size, government fiscal condition, and the state of national economic development are important influences. Further, those countries which have chosen the mass (voucher) privatisation route have done so largely out of necessity--and face ongoing efficiency problems as a result. Governments have great discretion in pricing the SOEs they sell, especially those being sold via public share offering, and they use this discretion to pursue political and economic ends. Finally, investors who purchase the shares of firms being privatised earn significantly positive excess returns both in the short-run (due to deliberate underpricing of share issues by the government) and over one, three, and five-year investment horizons.Capital, Investment, Employment, Financing policy, Ownership structure, Investment banking, Venture capital, Brokerage, Public economics, Sources of revenue, Public enterprises, Boundaries of public and private enterprise, Privatisation, Contracting out
Privatization and the Market for Corporate Control
Get PDFWe study the wealth effects of the mergers of privatized firms. Our sample entails 39 privatized firms that subsequently become targets of a takeover and 52 privatized firms that become bidders in mergers. Our results indicate that target firms experience a 12 percent increase in equity value at the announcement of a merger. The bidding firms experience a positive but insignificant change in equity value at merger announcement. The results indicate that mergers result in net wealth creation for privatized firms and are consistent with property rights/agency cost theory. The results also offer global, non-U.S. evidence that mergers create wealth.
UGA PROF EXPLAINS CURRENT ECONOMIC MESS
No full textGeorgia Law Adjunct Professor Jeffry M. Netter was interviewed by the Athens Banner-Herald regarding the current economic situation and how it affects the average American. The article was written by Lee Shearer and appeared on 10/05/08
UGA PROF EXPLAINS CURRENT ECONOMIC MESS
No full textGeorgia Law Adjunct Professor Jeffry M. Netter was interviewed by the Athens Banner-Herald regarding the current economic situation and how it affects the average American. The article was written by Lee Shearer and appeared on 10/05/08
Creditor rights, bank competition, and corporate investment during the global financial crisis
No full textI thank Ana I. Fernández, Carlos Fernández, Víctor González, Nuria Suárez, an anonymous referee, and the editor (Jeffry Netter) for their helpful comments. I acknowledge financial support from the Spanish Ministry of Economy and Competitiveness, Project ECO2012-3177
Size and Impact of Privatisation – A Survey of Empirical Studies
Get PDFPrivatisierung, Theorie, Empirische Methode, Privatization, Theory, Empirical method
The Evidence on Mergers and Acquisitions: A Historical and Modern Report ✶ ✶We thank James Netter, Lauren O'Neil, and Haley O'Steen for research assistance.
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What caused the 1987 stock market crash and lessons for the 2008 crash
No full textPurpose?-?The purpose of this paper is to review an explanation for the causes of the stock market crash in 1987, update the empirical support for that argument, and compare to recent market developments. Design/methodology/approach?-?While the market crash on October 19, 1987 was the largest one-day S&P 500 drop in percentage terms in history (20.47 percent) there was also a large market drop (10.12 percent) in the three trading days before the 1987 crash. Previous research has shown show that the three-day decline was the largest in more than 40 years, large enough that the drop was news itself (the October 16, 1987 drop immediately before the crash was also an extremely large one-day decline). The theoretical model of Jacklin et al. show how a surprise significant drop in the market could have provided information to the market that could directly lead to an immediate crash. Findings?-?The paper follows the stock market for 20 years after 1987, and finds the magnitude of the market decline immediately preceding October 19, 1987 was still a significant outlier?-?only one three-day period in the 20 years after 1987 had as large a market decline. The paper documents the large market movements and volatility in the period beginning in fall 2008 and suggests that this “crash” is different than what occurred in 1987. Research limitations/implications?-?This paper's main limitations lie in the implications drawn about the causes of the 2008 crash. Practical implications?-?This paper provides evidence on the causes of the 1987 crash and implications for the 2008 decline. The 1987 crash was due in part to characteristics news but also to the market and trading strategy, the 2008 “crash” is more likely a response to fundamental economic news. Originality/value?-?This paper uses empirical evidence since 1987 to look back on the causes of the 1987 crash.Financial modelling, Regulation, Stock markets, Stock prices, Take-overs, United States of America
An Empirical Investigation of the Determinants of Congressional Voting on Federal Financing of Abortions and the Era
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