A Note on the Pricing of Australian Government Asset Sales

Posted: 20 Aug 2014

Date Written: August 18, 2014

Abstract

Unlike acquiring company shareholders in Australian takeovers, but like shareholders in government initial public offerings, shareholders of companies purchasing Australian government assets earn economically and statistically significant positive abnormal returns. However, unlike privatisations via initial public offerings where all citizens are entitled to subscribe for shares, in privatisations via asset sales only acquiring company shareholders benefit from any under-pricing. This suggests the need for greater scrutiny to ensure fair pricing in privatisation via asset sales.

Keywords: asset sales, Australian governments, privatisation

Suggested Citation

Docherty, Paul and Easton, Stephen Andrew, A Note on the Pricing of Australian Government Asset Sales (August 18, 2014). Australian Journal of Management, Vol. 39, No. 3, 2014. Available at SSRN: https://ssrn.com/abstract=2482426

Paul Docherty (Contact Author)

Monash University ( email )

23 Innovation Walk
Wellington Road
Clayton, Victoria 3800
Australia

Stephen Andrew Easton

University of Newcastle ( email )

University Drive
Callaghan, nsw 2308
Australia

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