Credible privatization and market sentiment: Evidence from emerging bond markets

• 成果类型: Article
• 署名作者: Boubakri, Narjess; Cosset, Jean-Claude; Smaoui, Houcem
• 署名单位: Universite de Montreal; HEC Montreal; American University of Sharjah
• 刊物名称: JOURNAL OF INTERNATIONAL BUSINESS STUDIES
• ISSN/ISSBN: 0047-2506
• DOI: 10.1057/jibs.2008.100
• 发表日期: 2009
• 页码: 840-858
• 关键词: Privatization; emerging bond market spreads

摘要

This paper investigates the link between privatization and emerging market sovereign bond spreads. We conjecture that the way privatization is implemented may help to build a favorable market sentiment by gradually building investor confidence, which should then lead to a lower required compensation for policy risk. Controlling for other determinants of sovereign bond spreads, we find that privatization proceeds do not affect spreads, while privatization progress and share issues reduce spreads. Journal of International Business Studies (2009) 40, 840-858.