Long-Run IPO Performance for Family Firms - A study on the Swedish market
(2015) BUSN89 20151Department of Business Administration
- Abstract
- This thesis studies the long-run performance of IPOs. In addition, it differentiates between family firms and non-family firms. The long-run performance is tested on listings on Nasdaq OMX Stockholm over a period from 1997 to 2011. The sample consists of 100 firms, whereas 39 firms are classified as family firms. To test the long-run IPO performance, buy-and-hold abnormal return over a three year period is used as a measure. The benchmark used for calculating the buy-and-hold abnormal return is the OMX Stockholm index.
The results show that, on average, the firms in the sample underperform the benchmark with 8.37 percent, which means that after a firm conducts an IPO, the performance the following three years will be weak. The family... (More) - This thesis studies the long-run performance of IPOs. In addition, it differentiates between family firms and non-family firms. The long-run performance is tested on listings on Nasdaq OMX Stockholm over a period from 1997 to 2011. The sample consists of 100 firms, whereas 39 firms are classified as family firms. To test the long-run IPO performance, buy-and-hold abnormal return over a three year period is used as a measure. The benchmark used for calculating the buy-and-hold abnormal return is the OMX Stockholm index.
The results show that, on average, the firms in the sample underperform the benchmark with 8.37 percent, which means that after a firm conducts an IPO, the performance the following three years will be weak. The family firms perform insignificantly better than the non-family firms, with a buy-and-hold abnormal return of negative 7.18 percent, compared to negative 9.14 percent. The regressions show that family firms with low market values, as an approximation for long-run correction, have weak long-run performance post IPO. Family firms with low market values tend to perform worse than the family firms with higher market values. (Less)
Please use this url to cite or link to this publication:
http://lup.lub.lu.se/student-papers/record/5469314
- author
- Olsson, Linus LU and Östman, Marcus LU
- supervisor
- organization
- course
- BUSN89 20151
- year
- 2015
- type
- H1 - Master's Degree (One Year)
- subject
- keywords
- IPO, Long-Run Performance, Family Firm, Nasdaq OMX Stockholm, Buy-and-hold abnormal return
- language
- English
- id
- 5469314
- date added to LUP
- 2015-06-16 16:39:04
- date last changed
- 2015-06-16 16:39:04
@misc{5469314,
abstract = {{This thesis studies the long-run performance of IPOs. In addition, it differentiates between family firms and non-family firms. The long-run performance is tested on listings on Nasdaq OMX Stockholm over a period from 1997 to 2011. The sample consists of 100 firms, whereas 39 firms are classified as family firms. To test the long-run IPO performance, buy-and-hold abnormal return over a three year period is used as a measure. The benchmark used for calculating the buy-and-hold abnormal return is the OMX Stockholm index.
The results show that, on average, the firms in the sample underperform the benchmark with 8.37 percent, which means that after a firm conducts an IPO, the performance the following three years will be weak. The family firms perform insignificantly better than the non-family firms, with a buy-and-hold abnormal return of negative 7.18 percent, compared to negative 9.14 percent. The regressions show that family firms with low market values, as an approximation for long-run correction, have weak long-run performance post IPO. Family firms with low market values tend to perform worse than the family firms with higher market values.}},
author = {{Olsson, Linus and Östman, Marcus}},
language = {{eng}},
note = {{Student Paper}},
title = {{Long-Run IPO Performance for Family Firms - A study on the Swedish market}},
year = {{2015}},
}