Staged Privatization: An Efficient Approach

31 Pages Posted: 1 Oct 2009

See all articles by Kun Jiang

Kun Jiang

Hong Kong University of Science & Technology (HKUST)

Susheng Wang

Hong Kong University of Science & Technology (HKUST) - Department of Economics; Shanghai University - SHU-UTS SILC Business School

Date Written: September 28, 2009

Abstract

This paper provides a theory on staged or step-by-step privatization. We show that such an approach can be efficient, in the sense that it can successfully transform a state-owned enterprise into an efficient market-based firm by the time when the reform is complete. It may explain the popularity of staged privatization around the world. We have also conducted em-pirical analysis, which yields supporting evidence for our theory.

Keywords: staged privatization, lockup policy, tradable shares, nontradable shares

JEL Classification: D23, D73, P31

Suggested Citation

Jiang, Kun and Wang, Susheng, Staged Privatization: An Efficient Approach (September 28, 2009). Available at SSRN: https://ssrn.com/abstract=1479928 or http://dx.doi.org/10.2139/ssrn.1479928

Kun Jiang

Hong Kong University of Science & Technology (HKUST) ( email )

Clearwater Bay
Kowloon, 999999
Hong Kong

Susheng Wang (Contact Author)

Hong Kong University of Science & Technology (HKUST) - Department of Economics ( email )

Hong Kong
China

Shanghai University - SHU-UTS SILC Business School ( email )

Shanghai
China