Since 1981, over 100 governments around the world have raised over $1 trillion through the sale of SOEs to private investors.
Privatization programs have transformed the role of the state in virtually all-major economies, and have massively increased the capitalization and liquidity of all non-U.S. stock markets. The focus of this book lies on where privatization stands today and what are the next frontiers, the why and how behind countries who privatize certain industries, whether privatization works as an economic tool and important insights relevant to financial institutions such as how to value privatized industries, how share offerings differ from private offerings, and how countries go about harnessing private capital.
The book will also represent a key and unique source for information related to the details of asset sales privatization, a summary of statistics of privatized companies from 54 international stock exchanges, regulatory changes and sources for privatization information for investors, government officials, bankers and financial specialists.
The volume will serve as an invaluable reference for professionals and as a core or supplementary text in privatization courses.
Chapter 1: The Scope of Privatization Introduction A Brief History of State Ownership Until 1979 The Rise of Privatization, 1979-2002 How Much Privatization Has Actually Occurred? Summary Suggested Readings References Chapter 2: Why Do Countries Privatize? Introduction The Theoretical Case For State Ownership of Business Enterprises The Theoretical Case Against State Ownership of Business Enterprises Empirical Evidence on State versus Private Ownership Are There Effective Policy Alternatives to Privatization? The Fiscal and Macroeconomic Impact of Privatization Summary Suggested Readings References Chapter 3: How Do Countries Privatize? Introduction Commercializing and Restructuring SOEs Prior to Sale Strategic Issues in Planning for the Sale of Specific SOEs Non-Cash Methods of Privatization: Vouchers and Mass Privatization Privatizing SOEs Using Trade Sales Privatizing SOEs Using Public Share Offerings Summary Suggested Readings References Chapter 4: Empirical Evidence on Privatization's Effectiveness in Non-Transition Economies Introduction Strategic Approach to Classifying and Assessing Tests of Privatization's Effectiveness Empirical Studies Comparing Pre Versus Post-Privatization Performance of SIPs Case Study, Single-Industry and Single-Country Studies: Developed Nations Case Study, Single-Industry and Single-Country Studies: Developing Nations Infrastructure Privatization Studies Summary Suggested Readings References Chapter 5: Empirical Evidence on Privatization in Transition Economies Introduction Overview: The Economic Performance of Transition Economies Since 1989 Privatization's Impact on Economic Performance in Transition Economies Empirical Evidence on Privatization in Central and Eastern Europe (CEE) Empirical Evidence on Privatization in Russia and the Former Soviet Republics The Transition Outlier: Privatization's Impact on China's Economic Performance Summary Suggested Readings References Chapter 6: The Structure and Investment Performance of Privatization Share Introduction Characteristics of Share Issue Privatization (SIP) Offerings Initial Returns Earned by Investors in Share Issue Privatizations Long-Run Returns Earned by Investors in Share Issue Privatizations Summary Suggested Readings References Chapter 7: Privatization's Impact on Financial Market Development Introduction The Rise of Capital Market-Based Finance Privatization's Impact on Stock and Bond Market Development The Impact of Privatization on Individual and Institutional Share Ownership Privatization's Impact on International Corporate Governance What Must be Done to Develop an Effective Corporate Governance System? Summary Suggested Readings References Chapter 8: Privatization Industry Studies: Telecommunications Introduction Overview of the Global Telecommunications (Telecom) Industry Regulating Privatized Telecoms The Privatization Wave in Telecoms The Empirical Evidence on Telecom Privatization (and Regulation) The Future of Telecom Privatization Suggested Readings References Chapter 9: Privatization Industry Studies: Commercial Banking Introduction Why Has State Ownership of Commercial Banks Been So Prevalent Historically? Why Have Governments Launched Bank Privatization Programs? The Record on Privatizing State-Owned Banks Empirical Evidence on Banking Privatizations The Future of Banking Privatization Summary and Conclusions Suggested Readings References Chapter 10: Privatization Industry Studies: Energy and Airlines Introduction Privatizing Oil and Gas Companies Privatizing Electric Utilities Privatizing National Airlines Summary Suggested Readings References Chapter 11: The Lessons and Future of Privatization Introduction Lessons Learned from a Quarter-Century of Privatization Experience Unresolved Issues in Privatization Policy and Research The Future of Privatization References Appendices
Reviews for The Financial Economics of Privatization
The diversity of the topics covered and the scope of the information collected and surveyed...are truly fasinating and really thorough. Transnational corporations
