Shareholders in many share issued privatizations (SIPs) have enjoyed substa
ntial increases in the value of their investments. This study examines the
factors that influence the long-run stock price performance of an internati
onal sample of SIPs, focusing on three-year buy and hold returns. After con
trolling for market-wide changes in stock prices, one finds that the relati
ve size of the company has a negative effect on stock price performance, re
tained government ownership has a positive effect, the presence of a golden
share has a negative effect, initial underpricing has a positive effect, a
nd the timing of the privatization has no effect. Performance also depends
on the industry and home country.