This paper compares long-run buy-and-h이 d returns of privatization initial public offerings to those of domestic stock markets of respective countries using a sample of 204 privatization initial public offerings from 37 countries. The evidence indicates that the privatization IPOs significantly outperform their domestic stock markets. However. there are substantial variations in the long-run performance of privatization IPOs across industries. issuing countries. and offer size. In addition to comparing privatization IPO returns to the market return. the time serial determinants of long-run buy-and-h이 d returns of privatization shares are analyzed. The results indicate that the long-run performance of privatization IPOs is closely related to the proxies of policy uncertainty. consistent with the signaling models of Perotti (1995) and Biais and Perotti (1997)