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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)
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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},
  keyword      = {Initial public offerings,IPO performance,Financial variables,Swedish stock market,Buy-and-hold abnormal return},
  language     = {eng},
  note         = {Student Paper},
  title        = {Can you pick the winner?},
  year         = {2015},
}