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Can you pick the winner?

Rosenqvist Saidac, John LU and Swedérus, Christoffer LU (2015) BUSN89 20151
Department of Business Administration
Abstract
Title: Can you pick the winner? - Predictability of long-term IPO performance

Course: BUSN89

Authors: John R. Saidac & Christoffer Swedérus

Advisor: Naciye Sekerci

Key words: Initial public offerings, IPO performance, Financial variables, Swedish stock market, Buy-and-hold abnormal return

Purpose: The purpose of the thesis is to investigate the relationship between publicly available financial and firm characteristic variables and long-term performance of IPOs in Sweden.

Method: The thesis is performed using a quantitative approach, performing multiple regression analysis to test hypotheses

Theoretical perspective: This thesis departures from theories on the decision for firms to go public, IPO... (More)
Title: Can you pick the winner? - Predictability of long-term IPO performance

Course: BUSN89

Authors: John R. Saidac & Christoffer Swedérus

Advisor: Naciye Sekerci

Key words: Initial public offerings, IPO performance, Financial variables, Swedish stock market, Buy-and-hold abnormal return

Purpose: The purpose of the thesis is to investigate the relationship between publicly available financial and firm characteristic variables and long-term performance of IPOs in Sweden.

Method: The thesis is performed using a quantitative approach, performing multiple regression analysis to test hypotheses

Theoretical perspective: This thesis departures from theories on the decision for firms to go public, IPO underperformance and relevant empirical research on variable influence on IPO performance

Empirical foundation: The Empirical foundation consists of IPOs performed on Swedish stock markets between 2007-01-01 and 2011-12-31, fulfilling certain criteria.

Conclusions: Financial and firm characteristic variables have limited predictive abilities on long-term IPO performance on the Swedish stock market. Only market capitalization is found to have a statistically significant relationship to IPO performance, indicating a positive relationship to market-adjusted buy-and-hold abnormal returns. Furthermore, junior markets are found to provide higher possible returns as well as failure rates, consistent with the CAPM theory. (Less)
Please use this url to cite or link to this publication:
author
Rosenqvist Saidac, John LU and Swedérus, Christoffer LU
supervisor
organization
course
BUSN89 20151
year
type
H1 - Master's Degree (One Year)
subject
keywords
Initial public offerings, IPO performance, Financial variables, Swedish stock market, Buy-and-hold abnormal return
language
English
id
7439601
date added to LUP
2015-06-29 13:36:54
date last changed
2015-06-29 13:36:54
@misc{7439601,
  abstract     = {{Title: 	Can you pick the winner? - Predictability of long-term IPO performance

Course: 	BUSN89	

Authors: 	John R. Saidac & Christoffer Swedérus

Advisor: 	Naciye Sekerci

Key words: 	Initial public offerings, IPO performance, Financial variables, Swedish stock market, Buy-and-hold abnormal return

Purpose: 	The purpose of the thesis is to investigate the relationship between publicly available financial and firm characteristic variables and long-term performance of IPOs in Sweden.

Method: 	The thesis is performed using a quantitative approach, performing multiple regression analysis to test hypotheses

Theoretical perspective: 	This thesis departures from theories on the decision for firms to go public, IPO underperformance and relevant empirical research on variable influence on IPO performance 

Empirical foundation: 	The Empirical foundation consists of IPOs performed on Swedish stock markets between 2007-01-01 and 2011-12-31, fulfilling certain criteria. 

Conclusions: 	Financial and firm characteristic variables have limited predictive abilities on long-term IPO performance on the Swedish stock market. Only market capitalization is found to have a statistically significant relationship to IPO performance, indicating a positive relationship to market-adjusted buy-and-hold abnormal returns. Furthermore, junior markets are found to provide higher possible returns as well as failure rates, consistent with the CAPM theory.}},
  author       = {{Rosenqvist Saidac, John and Swedérus, Christoffer}},
  language     = {{eng}},
  note         = {{Student Paper}},
  title        = {{Can you pick the winner?}},
  year         = {{2015}},
}