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Performance of IPOs on the Nordic Market: Factors affecting Nordic IPOs before and after the financial crisis

Aburawi, Serajelden LU and Dajakaj, Leo LU (2018) NEKN02 20181
Department of Economics
Abstract
ABSTRACT
Title: Performance of IPOs on the Nordic Market Factors affecting Nordic IPOs before and after the financial crisis

Course: NEKN02, Economics: Master Essay 1 – Finance Program

Authors: Serajelden Aburawi, Leo Dajakaj

Advisors: Martin Striebomy, Anders Vilhelmsson

Key words: IPO, First-day return, Long-run performance, BHAR, Private Equity, Venture Capitalist

Purpose: This study aims to determine if there are any differences in the long-run performance and first-day returns between IPOs on the Nordic market with different ownership structures before and after the financial crisis of 2008. Furthermore, variables from previous studies have been chosen in order to study if they have an impact on the long-run... (More)
ABSTRACT
Title: Performance of IPOs on the Nordic Market Factors affecting Nordic IPOs before and after the financial crisis

Course: NEKN02, Economics: Master Essay 1 – Finance Program

Authors: Serajelden Aburawi, Leo Dajakaj

Advisors: Martin Striebomy, Anders Vilhelmsson

Key words: IPO, First-day return, Long-run performance, BHAR, Private Equity, Venture Capitalist

Purpose: This study aims to determine if there are any differences in the long-run performance and first-day returns between IPOs on the Nordic market with different ownership structures before and after the financial crisis of 2008. Furthermore, variables from previous studies have been chosen in order to study if they have an impact on the long-run performance of IPOs on the Nordic market

Methodology: The collected secondary data was analyzed through a quantitative method with a deductive approach

Theoretical perspectives: The previous studies that have been used in this paper have mainly concentrated on the long-run performance and first-day returns of IPOs on the European and US markets.

Empirical foundation: The basis for this study was data from firms on Nordic stock exchanges. The data was attained from Argentum, DataStream, Zephyr, annual-reports and firm-prospectuses


Conclusions: This paper find that there is significant difference in leverage ratio, market capitalization and offering size between private-equity backed IPOs, venture capital-backed IPOs and non-sponsored issues before and after the financial crisis. Further, private equity-backed IPOs in the sample outperform both venture capital-backed IPOs and non-sponsored issues in the long-run and have the lowest first-day returns before and after the financial crisis, however the differences are insignificant. Further, the independent variable offering size showed a significant negative impact on BHAR before and after the financial crisis and the independent dummy variable private equity showed a significant positive impact on BHAR after the financial crisis. (Less)
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author
Aburawi, Serajelden LU and Dajakaj, Leo LU
supervisor
organization
course
NEKN02 20181
year
type
H1 - Master's Degree (One Year)
subject
keywords
IPO, First-day return, Long-run performance, BHAR, Private Equity, Venture Capitalist
language
English
additional info
We had 2 supervisors assigned to us. Anders Vilhelmsson and Martin Strieborny
id
8943731
date added to LUP
2018-07-02 15:38:26
date last changed
2018-07-02 15:38:26
@misc{8943731,
  abstract     = {ABSTRACT
Title:	Performance of IPOs on the Nordic Market Factors affecting Nordic IPOs before and after the financial crisis

Course: 	NEKN02, Economics: Master Essay 1 – Finance Program

Authors: 	Serajelden Aburawi, Leo Dajakaj

Advisors: 	Martin Striebomy, Anders Vilhelmsson

Key words: 	IPO, First-day return, Long-run performance, BHAR, Private Equity, Venture Capitalist

Purpose: 	This study aims to determine if there are any differences in the long-run performance and first-day returns between IPOs on the Nordic market with different ownership structures before and after the financial crisis of 2008. Furthermore, variables from previous studies have been chosen in order to study if they have an impact on the long-run performance of IPOs on the Nordic market 

Methodology: 	The collected secondary data was analyzed through a quantitative method with a deductive approach 
	
Theoretical perspectives: 	The previous studies that have been used in this paper have mainly concentrated on the long-run performance and first-day returns of IPOs on the European and US markets.

Empirical foundation: 	The basis for this study was data from firms on Nordic stock exchanges. The data was attained from Argentum, DataStream, Zephyr, annual-reports and firm-prospectuses


Conclusions: 	This paper find that there is significant difference in leverage ratio, market capitalization and offering size between private-equity backed IPOs, venture capital-backed IPOs and non-sponsored issues before and after the financial crisis. Further, private equity-backed IPOs in the sample outperform both venture capital-backed IPOs and non-sponsored issues in the long-run and have the lowest first-day returns before and after the financial crisis, however the differences are insignificant. Further, the independent variable offering size showed a significant negative impact on BHAR before and after the financial crisis and the independent dummy variable private equity showed a significant positive impact on BHAR after the financial crisis.},
  author       = {Aburawi, Serajelden and Dajakaj, Leo},
  keyword      = {IPO,First-day return,Long-run performance,BHAR,Private Equity,Venture Capitalist},
  language     = {eng},
  note         = {Student Paper},
  title        = {Performance of IPOs on the Nordic Market: Factors affecting Nordic IPOs before and after the financial crisis},
  year         = {2018},
}