On the Undervaluation of Privatized Companies

A. Zalewska, P. Grout

Research output: Contribution to journalArticleAcademicpeer-review


Privatizations are commonly associated with underpricing and undervaluation. Underpricing has received significant attention in the literature, but there is no equivalent literature that explains undervaluation. This paper provides a theoretical model of why regulated privatized assets are prone to undervaluation.
Original languageEnglish
Pages (from-to)215-220
JournalEconomics Letters
Issue number2
Publication statusPublished - 1 Jan 2005

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