The structure of privatization plans

Authors
Publication date 1993
Journal Financial Management : Journal of the Financial Management Association
Volume | Issue number 22 | 1
Pages (from-to) 84-98
Organisations
  • Faculty of Economics and Business (FEB) - Amsterdam Business School Research Institute (ABS-RI)
Abstract
In the last decade, large-scale privatization programs have transformed the structure of corporate ownership in many countries, and are a major cause of the development of their capital markets. They have contributed to nondebt financing of the public deficit, attracted foreign capital and technology, and promoted the return of flight capital. Finally, the large task of privatization of state-owned enterprises in Eastern Europe has proven to be one of the most difficult in the transition to a market economy. This paper examines the history of large-scale privatization plans in several countries, and offers some revealing insight on the strategy used by governments to achieve large sales on the capital markets. Our results are relevant for investment bankers involved in advising governments on privatization sales, for institutions interested in assessing the risk of portfolio investment in emerging economies, and for potential joint-venture investors in former state-owned enterprises. We document remarkable similarities across different sale programs. Firms are typically sold gradually, even when control is transferred rapidly. Sales of utilities tend to be more gradual than for manufacturing firms in competitive markets. The form of the sale is usually a fixed-price offer, which is often heavily underpriced. We compare a popular interpretation of gradual sales, namely limited market capacity, with a confidence- building rationale. Partial sales are usually seen as a necessity dictated by the size of privatization programs relative to the existing public equity market. The argument is that rapid sales may swamp the market and depress sale prices. However, capital markets are by definition forward-looking; thus, their current size is a misleading indicator of their potential capacity, particularly as privatization tends to take place alongside a general reform process which emphasizes markets and restores confidence in the domestic economy. However, a reform process may be subsequently reversed under pressure by entrenched interest groups; thus investment in a privatized firm is exposed to the fisk of future adverse policy changes. A privatizing government must therefore overcome investors' diffidence about its regulatory and trade policy after the sale. In order to maximize proceeds, a government may retain a stake in the firm for some time (provided managerial control is transferred immediately). This willingness to bear part of the Policy fisk will lead to higher confidence and sale prices. The progress of sales may accelerate overtime as the policy credibility of reform becomes established. Similarly, early sales may be deliberately underpriced in order to convince the market to absorb larger sales. Although the two explanations have similar empirical implications, we identify several features of sale programs which appear to be consistent with the reputation-building hypothesis rather than with the notion of temporary market capacity constraints. The risk of adverse policy changes is likely to be particularly serious for firms with large fixed investment programs which operate as natural monopolies, such as utilities, or for protected manufacturers. The evidence indicates that sales of such policy-sensitive firms tend to be more gradual and exhibit larger underpricing. In the literature on initial public offerings (IPOs), a very gradual sale structure with large underpricing is optimal when the seller has superior information over the value of the firm. However, a government is not likely to know more than private investors about asset values. Moreover, most of these firms are large, well-known utilities with stable profitability and limited competition. We conclude that the main source of uncertainty in these cases concerns future regulatory policy. In contrast, complete sales are usually associated with manufacturing firms in competitive markets. Moreover, underpricing is, on average, greater in privatization sales (and particularly so for oligopolistic firms) than in the sale of private firms. The market capacity view does not distinguish between a sequence of complete sales and a program of staggered partial sales of comparable size. The evidence suggests that governments prefer to sell stakes in several firms simultaneously as opposed to sequencing complete sales, presumably building credibility over different industries at the same time. Moreover, a common feature of all programs is that the time profile of privatization proceeds tend to increase rapidly. This is inconsistent with a fixed capacity constraint, but can be rationalized as indicating a gradual buildup in investors' confidence. Finally, the fact that larger initial sales become more common over time suggests21620120519971997Evaluatiecommissie Wet milieubeheer: koplopers lijden onder een strak vergunningenregime25124032414uva/uba/fdr1240091020210;1;01;21122100;;;08;01;01-09-197721630220519961996De wet milieubeheer toegelicht: wegwijzer bij de uitvoering van de wet milieubeheer67uva/uba/fdrAmsterdamNederlands Instituut voor Arbeidsomstandigheden NIA9063651228Milieuwetgeving1204071020210;1;01;21122100;;;08;01;01-09-19771021398;1;01;21122100;;;08;01;01-10-198721640320519961996Handhaving en aansprakelijkheid67uva/uba/fdr's-GravenhageDelwelMilieuvoorschriften1204111020210;1;01;21122100;;;08;01;01-09-1977Aalders;;M.V.C.;dr.Acht;van;R.;Hommes;;J.;21650320520012001Valuation of strategic growth optionsuva/uba/feb/absCambridge, MAThe MIT press0-262-19446-5Real options and investment under uncertainty : classical readings and recent contributionsbron: CV van dhr. Perotti onder 'Book chapters ...'119954Kulatilaka;;N.;;1002206;1;04;24203020;;;02;01;20-03-1994Schwartz;;E.S. ;Trigeorgis;;L.;21660320520032003Building infrastructure for Dutch question answeringuva/uba/fnwi/iiProceedings DIR 20031237441048521;1;02;23002100;23141400;;04;01;01-04-2002Mishne;;G.A.;;1021171;1;99;23999999;;;99;99;01-01-1994Vries;de;A.P.;We report on the construction of the first-ever open domain question answering system for the Dutch language. In addition to providing experimental results based on the CLEF 2003 QA test set for Dutch, we also identify a number of key natural language processing resources that are needed to further question answering for Dutch.21670220519881988De ambiance van het recht74uva/uba/fdrAmsterdamDuizend & Een90713460641233631021253;1;01;21121300;;;03;01;01-09-198021680120519841984Om- en terugkeer van de eigendom25119714332931uva/uba/fdr1233611021253;1;01;21121300;;;03;01;01-09-198021690320520032003Preprocessing documents to answer Dutch questionsuva/uba/fnwi/iiProceedings BNAIC'031237471048521;1;02;23002100;23141400;;04;01;01-04-2002Mishne;;G.A.;;1021171;1;99;23999999;;;99;99;01-01-1994We describe a framework for offline extraction of certain types of information from a document collection, and discuss its usage for answering factoid questions. We implemented this approach as a part of the Dutch Question Answering System developed at the University of Amsterdam. The evaluation of the system using data from the CLEF 2003 Question Answering track shows that our strategy yields a significant improvement in the performance of our overall system.21700320520032003Model checking for hybrid logicsuva/uba/fnwi/iiProceedings M4M-3123749Franceschet;;M.;Dr;1021171;1;99;23999999;;;99;99;01-01-199421710120520022002Field-induced magnetic structures in UNiGe31452074suppl.1757759uva/uba/fnwi/wzi1207851003358;1;01;23969900;;;03;01;01-05-1992Prokes;;K.;dr.;Nakotte;;H.;dr.;Châtel;de;P.F.;prof. dr.;Sechovsky;;V.;dr.;Below TN=50 K, UNiGe exhibits incommensurate (INC) antiferromagnetic (AF) order with an additional order-order (AF) phase transition at TM=42.5 K. The ground-state AF structure is characterized by a propagation vector (0,1/2,1/2). At 4.2 K, there are two field-induced transitions at 17 and 25 T for the b-axis and at 3 and 10 T for fields along c. No transitions are observed for the a�B orientation up to 38 T. While the intermediate field-induced phases for both b�B and c�B geometries have propagation vector (0,1/3,1/3), the INC structure is characterized by a propagation vector (0,'1, '2). All phases have a non-collinear arrangement of U moments with all three components, i.e. also along the a-axis, which is the hard-magnetization direction. The field-forced ferromagnetic phase, which is established for c�B above 10 T still exhibits a significant a-axis component. This suggests that the magnetic ordering in UNiGe is governed by anisotropic exchange interactions.21720320519981998Gedragsgeoriënteerde gezinsbehandeling176197uva/uba/fmg/psychHoutenBohn Stafleu van LoghumMethoden en technieken van gedragstherapie bij kinderen en jeugdigen1715051001692;1;01;94002000;;;02;01;01-01-1965Prins;;P.J.M.;Bosch;;J.D.;21730320519891989De behandeling van kinderen en adolescenten met behulp van directieve gezinstherapieuva/uba/fmg/psychLisseSwets & ZeitlingerKind op het spoor: Opstellen uit de klinische kinder-en jeugdpsychotherapie1866491001692;1;01;94002000;;;02;01;01-01-1965Prins;;P.;Wit;de;C.;21740120520042004Reducing Aggressive Behavior in Boys With a Social Cognitive Group Treatment: Results of a Randomized, Controlled Trial.291556431214781487uva/uba/fmg/psych145823Manen;van;T.G.;;1002296;1;01;94002000;;;02;01;01-10-19761010619;1;01;94002000;;;01;01;15-09-1996Objective: To evaluate the effectiveness of a social cognitive intervention program for Dutch aggressive boys and to compare it with a social skills training and a waitlist control group. Method: A randomized, controlled treatment outcome study with 97 aggressive boys (aged 9-13 years) was presented. An 11-session group treatment, a social cognitive intervention program (n = 42) based on Dodge's social information-processing theory, was compared with social skills training (n = 40) and waitlist control group (n = 15). Measures of aggressive behavior, self-control, social cognitive skills, and appropriate social behavior were completed before and after the group treatment and at 1-year follow-up. Results: The outcome of both treatment conditions indicated (1) a significant increase in appropriate social behavior, social cognitive skills, and self-control and (2) a significant decrease in aggressive behavior. There was a significant difference between treatment and no treatment and between the social cognitive intervention program and social skills training on various child, parent, and teacher measures. Conclusions: The expectation that focusing on the deficits and distortions in social cognitive processes (social cognitive intervention program) instead of merely focusing on social skills (social skills training) would enhance the effectiveness was supported on child, parent, and teacher measures. At 1-year follow-up, the mean effect sizes of the social cognitive intervention program and social skills training were 0.76 and 0.56, respectively.21750120520012001The x-ray spectrum of the rapid burster using the Chandra HETGSBulletin of the American Astronomical SocietyVol. 331823823uva/uba/fnwi/api124137Marshall;;H.L.;;Rutledge;;R.;;Fox;;D.W.;;Miller;;J.M.;;Guerriero;;R.;;Morgan;;E.;;1001498;1;01;23961600;;;01;01;01-12-1988Bildsten;;L.;;Dotani;;T.;;21760120520002000A possible explanation for the parallel track phenomenon in kilohertz QPOsBulletin of the American Astronomical Society32112171217uva/uba/fnwi/api1241711001498;1;01;23961600;;;01;01;01-12-198821770320520042004Comparing the ambiguity reduction abilities of probabilistic context-free grammars20352038uva/uba/fnwi/iiProceedings of the Fourth International Conference on Language Resources and Evaluation (LREC 2004). Vol. VI123677Infante-Lopez;;G.G.;;1021171;1;99;23999999;;;99;99;01-01-1994We present a measure for evaluating Probabilistic Context Free Grammars (PCFG) based on their ambiguity resolution capabilities. Probabilities in a PCFG can be seen as a filtering mechanism: For an ambiguous sentence, the trees bearing maximum probability are single out, while all others are discarded. The level of ambiguity is related to the size of the singled out set of trees. Under our measure, a grammar is better than other if the first one has reduced the level of ambiguity in a higher degree. The measure we present is computed over a finite sample set of sentence because, as we show, it can not be computed over the set of sentences accepted by the grammar.21780120520012001An Instrument Can Make a Science: Jevons s Balancing Acts in Economics11015733annual supplement277302uva/uba/feb/ase7441001821;1;02;24202230;;;03;01;01-03-1993UR21790320520042004BioGrapher: biography questions as a restricted domain question answering taskuva/uba/fmguva/uba/fnwi/iiProceedings of the ACL 2004 Workshop on Question Answering in Restricted Domains123616Tsur;;O.;;1021171;1;99;23999999;;;99;99;01-01-19941027629;1;02;23950060;;;05;01;01-01-1992We address Question Answering (QA) for biographical questions, i.e., questions asking for biographical facts about persons. The domain of biographical documents differs from other restricted domains in that the available collections of biographies are inherently incomplete: a major challenge is to answer questions about persons for whom biographical information is not present in biography collections. We present BioGrapher, a biographical QA system that addresses this problem by machine learning algorithms for biography classification. BioGrapher first attempts to answer a question by searching in a given collection of biographies, using techniques tailored for the restricted nature of the domain. If a biography is not found, BioGrapher attempts to find an answer on the web: it retrieves documents using a web search engine, filters these using the biography classifier, and then extracts answers from documents classified as biographies. Our empirical results show that biographical classification, prior to answer extraction, improves the results.21800320520042004Source code retrieval using conceptual similarity539554uva/uba/fnwi/iiProceedins RIAO 2004123681Mishne;;G.A.;;1021171;1;99;23999999;;;99;99;01-01-1994We propose a method for retrieving segments of source code from a large repository. The method is based on conceptual modeling of the code, combining information extracted from the structure of the code and standard informationdistance measures. 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Review: De rol van computers in onze samenleving neemt snel toe. Een ontwikkeling waar sommigen zich zorgen over maken, terwijl naar de mening van vele anderen de ontwikkeling niet snel genoeg kan gaan. Dit boek wil een bijdrage leveren aan de discussie pro en contra deze ontwikkeling. Het signaleert maatschappelijke problemen die met het gebruik van computers samenhangen en die nu of in de toekomst voor kunnen komen. Hierbij fungeert het boek duidelijk als discussiestuk; er worden geen oplossingen aangedragen. Met name ook door het vele feitenmateriaal lijkt dit boek een positieve bijdrage tot een belangrijke discussie. 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Platform investment is the creation of an innovative distribution and production infrastructure, which increases access to customers; as a result it reduces entry costs in related products. Relative to conventional producers, firms built around platforms enjoy enhanced entry options in uncertain market segments, to be exercised at the optimal strategic timing. When the platform grants a strong strategic advantage, the innovator firm can optimally choose the timing of entry when its strategic gain exceeds the value of the waiting option; in case of weaker advantage, the platform firm enters just before its competitor would. In a context of increased uncertainty, the relative value of platform to traditional strategies increases; the value of waiting to invest rises, but the value of platforms increases even more. 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The track was divided into monolingual and bilingual tasks: monolingual systems were evaluated within the frame of three non-English European languages, Dutch, Italian and Spanish, while in the crosslanguage tasks an English document collection constituted the target corpus for Italian, Spanish, Dutch, French and German queries. Participants were given 200 questions for each task, and were allowed to submit up to two runs per task with up to three responses (either exact answers or 50 bytes long strings) per question. We give here an overview of the track: we report on each task and discuss the creation of the multilingual test sets and the participants' results.22080320520032003Creating the DISEQuA corpus: a multilingual test set for the monolingual question Answering tasks at CLEF 2003uva/uba/fnwi/iiWorking notes for the CLEF 2003 Workshop123753Magnini;;B.;;Romagnoli;;S.;;Vallin;;A.;;Herrera;;J.;;Peñas;;A.;;Peinado;;V.;;Verdejo;;F.;;1021171;1;99;23999999;;;99;99;01-01-1994This paper describes the procedure adopted by the three co-ordinators of the CLEF 2003 question answering track (ITC-irst, UNED and ILLC) to create the question set for the monolingual tasks. Despite the little resources available, the three groups collaborated and managed to formulate and verify a large pool of original questions posed in three different languages: Dutch, Italian and Spanish. A part of these queries was translated into English and shared between the three coordination groups. 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The article reports on the different stages of the corpus creation, from the monolingual kernels to the multilingual extension.22090120520002000Kilohertz oscillations as a probe of strong gravity and dense matterBulletin of the American Astronomical Society32112491249uva/uba/fnwi/api1241651001498;1;01;23961600;;;01;01;01-12-198822100120520002000The L X > 10 30 erg s -1 source population of three globular clustersBulletin of the American Astronomical Society32112291229uva/uba/fnwi/api124168Pooley;;D.;;Lewin;;W.H.G.;;Verbunt;;F.;;Fox;;D.W.;;Margon;;B.;;Kaspi;;V.M.;;1001498;1;01;23961600;;;01;01;01-12-1988Miller;;J.;;22110120520002000X-ray bursts at extreme mass accretion ratesBulletin of the American Astronomical Society32112191219uva/uba/fnwi/api124169Kuulkers;;E.;;1010829;1;03;23961600;;;08;99;01-02-19971001498;1;01;23961600;;;01;01;01-12-198822120120520002000Pulse timing analysis of the recent outburst of SAX J1808.4-3658Bulletin of the American Astronomical Society32112181218uva/uba/fnwi/api124170Morgan;;E.H.;;Chakrabarty;;D.;;1003901;2;02;23961600;;;08;01;15-01-19951001498;1;01;23961600;;;01;01;01-12-198822130120520012001A career counseling program for dentists: Effects on burnout.2979524312330uva/uba/fmg/psych1236881000951;1;02;22146200;;;08;01;01-04-19901000764;1;01;22146200;;;01;01;01-10-19921001227;1;01;94003000;;;02;01;01-04-1969Examined the effects of a career counseling program on burnout among general dental practitioners. 19 dentists with unfavorable scores on the Dutch version of the Maslach Burnout Inventory (C. Maslach et al, 1996, MBI-NL) completed a cognitive-behavioral intervention. Ss again completed the MBI-NL 1 mo following completion of the 6-mo program. Results show that Ss' scores significantly improved between pre- and posttesting concerning emotional exhaustion (EE) and personal accomplishment (PA). Control Ss who had self-initiated preventive measures also attained improved scores concerning EE and PA, but no changes were observed with those controls who undertook no preventive action. It is concluded that the prevention program exerts a positive effect on burnout scores among Ss, while different forms of self-initiated prevention activities may also be effective.22140120519911991Onzorgvuldige toelating bestrijdingsmiddelen314710522uva/uba/fdr1239491020210;1;01;21122100;;;08;01;01-09-197722150320520032003The University of Amsterdam at QA@CLEF 2003uva/uba/fnwi/iiWorking notes for the CLEF 2003 Workshop1237571048521;1;02;23002100;23141400;;04;01;01-04-2002Mishne;;G.A.;;1021171;1;99;23999999;;;99;99;01-01-1994Peters;;C.;This paper describes the official runs of our team for QA@CLEF 2003. We took part in the monolingual Dutch Question Answering task.22160320519911991Milieuconvenanten36uva/uba/fdrDen HaagDELWEL Uitgeverij BV9061553997Milieuvoorschriften : vergunningen, heffingen, subsidies en teksten1240631020210;1;01;21122100;;;08;01;01-09-1977Acht;van;R.J.J.;;Veldhuis;te;A.J.;Hommes;;J.;Stevers;;J.M.;22170220519911991Ontwikkeling in milieubeleid en bedrijfsmilieuzorg: Les 1 van de Schriftelijke praktijkcursus bedrijfsmilieuzorg (bewerking)97uva/uba/fdrEindhovenEuroforum1203611020210;1;01;21122100;;;08;01;01-09-197722180320520042004An element-based approach to XML retrieval1926uva/uba/fnwi/iiProceedings INEX 2003123683Sigurbjörnsson;;B.;Drs;1007719;1;03;93001050;;;04;07;01-07-19951021171;1;99;23999999;;;99;99;01-01-1994This paper describes the INEX 2003 participation of the Language & Inference Technology group of the University of Amsterdam. We participated in all three of the tasks, content-only, strict content-and-structure and vague content-and-structure. Our main strategic lines were to find the appropriate units of retrieval and to mix evidence from several layers in the XML hierarchy.22190120519981998Experimental testing of dynamic energy budget models25218712211222uva/uba/fnwi/ibed124426Noonburg;;E.G.;;Nisbet;;R.M.;;McCauley;;E.;;Gurney;;W.S.C.;;Murdoch;;W.W.;;1002420;1;01;23184001;;;08;01;01-08-199022200120519981998Electrophysiological and morphological heterogeneity of neurons in slices of rat suprachiasmatic nucleus.31475750619775793uva/uba/fnwi/silsOriginally published by Cambridge University Press http://jp.physoc.org/1231541002201;1;04;23183000;;;04;01;01-07-1989Jeu;de;M.T.;;Geurtsen;;A.M.;;Sluiter;;A.A.;;Hermes;;M.L.;;22210320519991999POWER: Programme for an Ontology based Working Environment for modeling and use of Regulations and legislationuva/uba/fdr291392302XISMICK99 proceedings1238711055860;1;02;21005305;21000400;;01;01;01-04-2003Kordelaar;;P.J.M.;;22220320520032003Controlled model exploration205220uva/uba/fnwi/iiKing's College London PublicationsLondonAdvances in modal logic. Vol. IV123768Infante-Lopez;;G.G.;;Areces;;C.E.;Drs;1021171;1;99;23999999;;;99;99;01-01-1994Balbiani;;Ph.;Suzuki;;N.-Y.;Wolter;;F.;We provide a detailed analysis of very weak fragments of modal logic. Our fragments lack connectives that introduce non-determinism and they feature restrictions on the modal operators, which may lead to substantial reductions in complexity. Our main result is a general game-based characterization of the expressive power of our fragments over the class of nite structures.22230320520032003Selectively using linguistic resources throughout the question answering pipelineuva/uba/fnwi/iiProceedings 2nd CoLogNET-ElsNET Symposium123703Bernardi;;R.B.;Drs;1048521;1;02;23002100;23141400;;04;01;01-04-2002Mishne;;G.A.;;1021171;1;99;23999999;;;99;99;01-01-1994It is generally believed that question answering can benefit from natural language processing methods. So far, however, there have been few systematic studies of this conjecture. We report on ongoing work that is aimed at understanding the contribution of linguistically informed modules and resources to the overall performance of a generic question answering system. Specifically, we describe the ways in which currently we use linguistically motivated techniques, and demonstrate the impact of integrating, or not integrating, these techniques on the overall performance of our question answering system. Evaluation results are based on the TREC 2002 and TREC 2003 question sets.22240320520042004Dynamic teaching materials for ESSLLIuva/uba/fnwi/iiLREC Workshop on Language Resources: Integration and Development in e-Learning and in Teaching Computational Linguistics123673Bernardi;;R.B.;Drs;Dahn;;I.;;Mishne;;G.A.;;Moortgat;;M.;;1021171;1;99;23999999;;;99;99;01-01-1994Uszkoreit;;H.;;Monachesi;;P.;Vertan;;C.;Hahn;von;W.;
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