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The Economic Cycle’s Effect on IPOs

Lindh, Niklas LU and Pennsäter, Viktor (2016) BUSN89 20161
Department 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:
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
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},
  keyword      = {IPO,initial public offering,economic cycle,market timing and IPO waves},
  language     = {eng},
  note         = {Student Paper},
  title        = {The Economic Cycle’s Effect on IPOs},
  year         = {2016},
}