STOCK MARKET WEALTH-EFFECTS DURING PRIVATIZATION INITIAL PUBLIC OFFERS IN CHILE (1984-1989)

The aftermarket performance of eleven privatization Initial Public Offers (IPOs) in Chile during 1984-1989 is studied in this document, and a detailed description of the economic and political conditions that prevailed is provided. In particular, we discuss the operational details of the stock issui...

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Detalles Bibliográficos
Autor: ROBERTO J. SANTILLÁN SALGADO
Tipo de recurso: artículo
Estado:Versión publicada
Fecha de publicación:2010
País:México
Institución:Instituto Tecnológico y de Estudios Superiores de Monterrey
Repositorio:Redalyc-ITESM
OAI Identifier:oai:redalyc.org:21218551003
Acceso en línea:https://www.redalyc.org/articulo.oa?id=21218551003
Access Level:acceso abierto
Palabra clave:Administración y Contabilidad
IPOs long
run under
IPOs' short
performance
Privatization
Descripción
Sumario:The aftermarket performance of eleven privatization Initial Public Offers (IPOs) in Chile during 1984-1989 is studied in this document, and a detailed description of the economic and political conditions that prevailed is provided. In particular, we discuss the operational details of the stock issuing mechanism, complemented with a statistical study on the IPOs' Market Adjusted Returns. While the sample size is limited and does not support a significant external validity, the analysis confirms the presence of aftermarket performance patterns that are very similar to those observed in private and privatization IPOs reported elsewhere (Aggarwal, Leal and Hernández, 1993; Dewenter and Malatesta, 1997; Loughran, Ritter and Rydqvist, 1994; Perotti and Guney, 1993).