“The Performance of Private Equity and non-Private Equity Backed Initial Public Offerings”: A Study of Underpricing and Long-Run Stock Performance on the European Stock Exchanges
(2011)Department of Business Administration
- Abstract
- The analysis shows that underpricing exists on the European market during 1999-2010 and that PE backed firms usually experience a lower underpricing than non-PE backed companies. Maturity, earnings management and company size are variables explaining underpricing for PE firms. For non-PE backed IPOs, earnings management is the only statistically significant variable explaining the underpricing. In the sample used, there is no difference in long-run stock performance between PE and non-PE backed firms. However, different variables explain the long-run stock performance depending on the firm being PE and non-PE backed. Operating margin affects the long-run stock performance for PE backed IPOs, while company size explains the long-run... (More)
- The analysis shows that underpricing exists on the European market during 1999-2010 and that PE backed firms usually experience a lower underpricing than non-PE backed companies. Maturity, earnings management and company size are variables explaining underpricing for PE firms. For non-PE backed IPOs, earnings management is the only statistically significant variable explaining the underpricing. In the sample used, there is no difference in long-run stock performance between PE and non-PE backed firms. However, different variables explain the long-run stock performance depending on the firm being PE and non-PE backed. Operating margin affects the long-run stock performance for PE backed IPOs, while company size explains the long-run performance for non-PE backed firms. In addition, the underpricing size does not affect long-run stock performance. (Less)
Please use this url to cite or link to this publication:
http://lup.lub.lu.se/student-papers/record/2004270
- author
- Åstrand, Camilla and Landgren, Ylva
- supervisor
- organization
- year
- 2011
- type
- H1 - Master's Degree (One Year)
- subject
- keywords
- IPOs, underpricing, long-run stock performance, private equity, European Stock Exchanges, Management of enterprises, Företagsledning, management
- language
- Swedish
- id
- 2004270
- date added to LUP
- 2011-05-23 00:00:00
- date last changed
- 2012-04-02 19:07:49
@misc{2004270,
abstract = {{The analysis shows that underpricing exists on the European market during 1999-2010 and that PE backed firms usually experience a lower underpricing than non-PE backed companies. Maturity, earnings management and company size are variables explaining underpricing for PE firms. For non-PE backed IPOs, earnings management is the only statistically significant variable explaining the underpricing. In the sample used, there is no difference in long-run stock performance between PE and non-PE backed firms. However, different variables explain the long-run stock performance depending on the firm being PE and non-PE backed. Operating margin affects the long-run stock performance for PE backed IPOs, while company size explains the long-run performance for non-PE backed firms. In addition, the underpricing size does not affect long-run stock performance.}},
author = {{Åstrand, Camilla and Landgren, Ylva}},
language = {{swe}},
note = {{Student Paper}},
title = {{“The Performance of Private Equity and non-Private Equity Backed Initial Public Offerings”: A Study of Underpricing and Long-Run Stock Performance on the European Stock Exchanges}},
year = {{2011}},
}