The Economic Cycle’s Effect on IPOs
(2016) BUSN89 20161Department of Business Administration
- Abstract
- Title: The Economic Cycle’s Effect on IPOs
Seminar date: 2016-06-02
Course: BUSN89 Degree Project in Corporate and Financial Management – Master Level, 15 ECTS
Authors: Niklas Lindh and Viktor Pennsäter
Supervisor: Håkan Jankensgård
Key words: IPO, initial public offering, economic cycle, market timing and IPO waves.
Purpose: Investigate how the economic cycle influences IPO initial return and long-run performance.
Theoretical perspective: Previous research and theories is used, including asymmetric information hypothesis, signaling theory, impresario hypothesis, divergence of opinion hypothesis, window-dressing hypothesis, window of opportunity hypothesis and the spillover effect.
... (More) - Title: The Economic Cycle’s Effect on IPOs
Seminar date: 2016-06-02
Course: BUSN89 Degree Project in Corporate and Financial Management – Master Level, 15 ECTS
Authors: Niklas Lindh and Viktor Pennsäter
Supervisor: Håkan Jankensgård
Key words: IPO, initial public offering, economic cycle, market timing and IPO waves.
Purpose: Investigate how the economic cycle influences IPO initial return and long-run performance.
Theoretical perspective: Previous research and theories is used, including asymmetric information hypothesis, signaling theory, impresario hypothesis, divergence of opinion hypothesis, window-dressing hypothesis, window of opportunity hypothesis and the spillover effect.
Methodology: An event study is conducted to identify abnormal returns. First day return and a long-run performance over 36 months are then used as dependent variables in several regressions. The economic cycle is an independent variable, complemented by other variables focusing on operating performance.
Empirical foundation: 162 IPOs from the stock exchanges Nasdaq OMX Stockholm and Aktietorget are studied from the time period 2001-07-01 to 2012-12-31.
Conclusion: Economic cycles cannot explain any differences in initial return and long-run performance. (Less)
Please use this url to cite or link to this publication:
http://lup.lub.lu.se/student-papers/record/8889777
- author
- Lindh, Niklas LU and Pennsäter, Viktor
- supervisor
- organization
- alternative title
- - Examining the initial return and long-term performance on the Swedish market, from a market timing perspective
- course
- BUSN89 20161
- year
- 2016
- type
- H1 - Master's Degree (One Year)
- subject
- keywords
- IPO, initial public offering, economic cycle, market timing and IPO waves
- language
- English
- id
- 8889777
- date added to LUP
- 2016-09-13 15:02:54
- date last changed
- 2016-09-13 15:02:54
@misc{8889777,
abstract = {{Title: The Economic Cycle’s Effect on IPOs
Seminar date: 2016-06-02
Course: BUSN89 Degree Project in Corporate and Financial Management – Master Level, 15 ECTS
Authors: Niklas Lindh and Viktor Pennsäter
Supervisor: Håkan Jankensgård
Key words: IPO, initial public offering, economic cycle, market timing and IPO waves.
Purpose: Investigate how the economic cycle influences IPO initial return and long-run performance.
Theoretical perspective: Previous research and theories is used, including asymmetric information hypothesis, signaling theory, impresario hypothesis, divergence of opinion hypothesis, window-dressing hypothesis, window of opportunity hypothesis and the spillover effect.
Methodology: An event study is conducted to identify abnormal returns. First day return and a long-run performance over 36 months are then used as dependent variables in several regressions. The economic cycle is an independent variable, complemented by other variables focusing on operating performance.
Empirical foundation: 162 IPOs from the stock exchanges Nasdaq OMX Stockholm and Aktietorget are studied from the time period 2001-07-01 to 2012-12-31.
Conclusion: Economic cycles cannot explain any differences in initial return and long-run performance.}},
author = {{Lindh, Niklas and Pennsäter, Viktor}},
language = {{eng}},
note = {{Student Paper}},
title = {{The Economic Cycle’s Effect on IPOs}},
year = {{2016}},
}