The effect of industry type on long-run performance of initial public offerings for privatized companies in the Iran

Abstract

In the current study, the effect of industry type on the long-run performance of stock pricing in the initial public offerings (IPOs) of privatized state-owned companies (SOEs) in Tehran Stock Exchange is studied. The proposed study applies long-run buy and hold return index of the stock. The sample population of the study includes the privatized SOEs present in TSE over the period 2001- 2006. The assessments of this study shows that long-run stock buy- and- hold return of the companies admitted in stock exchange is less than market’s long-run return during the same period after 36 months and the industry type has impacted on long-run buy- and- hold return of the admitted companies.

Keywords

• Privatization
• Initial public offerings (IPOs)
• Buy-and-hold abnormal
• return Stock return
• Industry type