The Analysis on the Optimal Timing of Privatization

• Main Authors: Tseng, Yu-che, 曾于哲
• Other Authors: Ma, Chia-ying Ph.D.
• Format: Others
• Language: zh-TW
• Published: 2004
• Online Access: http://ndltd.ncl.edu.tw/handle/30836156154967064749

碩士 === 東吳大學 === 會計學系 === 92 === Taiwan’s privatization program has experienced a number of roadblocks including, among other reasons, unfavorable share issued privatization (SIP) price, oppositions from legislative branch of the government, and lack of market enthusiasm in recent years that had resulted in delay of several SIP cases. It is in light of the concerns mentioned above, that we would like to investigate if there exists an optimal timing for privatization, particularly, the SIP type of privatization. According to preliminary exploration, there isn’t any study aimed at the investigation of the optimal timing of privatization using real options analysis under the consideration of that government holds the option to delay a planned privatization. We consider this study using Taiwan’s privatization program as the object of empirical study adds knowledge to the understanding of the implication of the effects of option value on Taiwan’s privatization program and broadens the application scope of real options analysis. We considerably recommend evaluating the privatization policy in an early stage. The lower the competitive advantages of the SOE, the lower the fixed benefit would be received rather than waiting. In our model, we deliberate to consider economic variables. Hence, there must be other factors beyond our real options analysis and might drift the privatization policy into more complicated situations.