Stock Performance Differences in Swedish Life Science Companies with or without Research-based Science Park Affiliation
(2018) BUSN79 20181Department of Business Administration
- Abstract
- Stock Performance Differences in Swedish Life Science Companies with or
without Research-based Science Park Affiliation
Seminar date 2018-06-01
Course BUSN 79 Business Administration: Degree Project in Accounting and
Finance - Master Level, 15 ECTS
Authors: Eric Isacsson and Liana Trichkova
Advisor: Håkan Jankensgård
Key words: Science park affiliation, university ownership, life science, long-term buyand-
hold-abnormal return, short-term cumulative abnormal return.
Purpose: The purpose of the study is to investigate if there is a difference in the
publicly traded stock performance of science park affiliated and non-affiliated
life science firms. As well as to assess if university ownership for science park
... (More) - Stock Performance Differences in Swedish Life Science Companies with or
without Research-based Science Park Affiliation
Seminar date 2018-06-01
Course BUSN 79 Business Administration: Degree Project in Accounting and
Finance - Master Level, 15 ECTS
Authors: Eric Isacsson and Liana Trichkova
Advisor: Håkan Jankensgård
Key words: Science park affiliation, university ownership, life science, long-term buyand-
hold-abnormal return, short-term cumulative abnormal return.
Purpose: The purpose of the study is to investigate if there is a difference in the
publicly traded stock performance of science park affiliated and non-affiliated
life science firms. As well as to assess if university ownership for science park
affiliated life science firms influence shareholder returns.
Methodology: A long-term event study analysis (BHAR) is conducted to examine if science
park affiliated and non-affiliated life science firms realize different returns.
The buy-and-hold abnormal return is used as a dependent variable in a
regression analysis which allows to include the variables of interest - science
park affiliation and university ownership measures. Additionally, a short-term
event study analysis (CAR) is carried out, evaluating the response of the
market to an event, joining a science park, as compared to the expected
returns provided by the market model.
Theoretical perspective: The study is based on theoretical insights regarding the effects of science
parks on affiliated companies in a knowledge intensive environment. The
contribution of the thesis comes from studying those effects from the financial
markets perspective in Swedish life science firms.
Empirical foundation: 170 IPOs of Swedish life science firms out of which 72 are affiliated with
science parks and 98 non-affiliated.
Conclusion: The results show that there are no long-term (36-month) abnormal returns
from affiliation with a science park. University ownership has no abnormal
return effect. A life science company that joins a science park experience a
statistically significant positive stock return of 3 % on the day of the
announcement. (Less) - Popular Abstract
- Purpose: The purpose of the study is to investigate if there is a difference in the
publicly traded stock performance of science park affiliated and non-affiliated
life science firms. As well as to assess if university ownership for science park
affiliated life science firms influence shareholder returns.
Conclusion: The results show that there are no long-term (36-month) abnormal returns
from affiliation with a science park. University ownership has no abnormal
return effect. A life science company that joins a science park experience a
statistically significant positive stock return of 3 % on the day of the
announcement.
Please use this url to cite or link to this publication:
http://lup.lub.lu.se/student-papers/record/8944680
- author
- Isacsson, Eric LU and Trichkova, Liana LU
- supervisor
- organization
- course
- BUSN79 20181
- year
- 2018
- type
- H1 - Master's Degree (One Year)
- subject
- keywords
- Science park affiliation, university ownership, life science, long-term buy and- hold-abnormal return, short-term cumulative abnormal return.
- language
- English
- id
- 8944680
- date added to LUP
- 2018-06-27 13:52:36
- date last changed
- 2018-06-27 13:52:36
@misc{8944680,
abstract = {{Stock Performance Differences in Swedish Life Science Companies with or
without Research-based Science Park Affiliation
Seminar date 2018-06-01
Course BUSN 79 Business Administration: Degree Project in Accounting and
Finance - Master Level, 15 ECTS
Authors: Eric Isacsson and Liana Trichkova
Advisor: Håkan Jankensgård
Key words: Science park affiliation, university ownership, life science, long-term buyand-
hold-abnormal return, short-term cumulative abnormal return.
Purpose: The purpose of the study is to investigate if there is a difference in the
publicly traded stock performance of science park affiliated and non-affiliated
life science firms. As well as to assess if university ownership for science park
affiliated life science firms influence shareholder returns.
Methodology: A long-term event study analysis (BHAR) is conducted to examine if science
park affiliated and non-affiliated life science firms realize different returns.
The buy-and-hold abnormal return is used as a dependent variable in a
regression analysis which allows to include the variables of interest - science
park affiliation and university ownership measures. Additionally, a short-term
event study analysis (CAR) is carried out, evaluating the response of the
market to an event, joining a science park, as compared to the expected
returns provided by the market model.
Theoretical perspective: The study is based on theoretical insights regarding the effects of science
parks on affiliated companies in a knowledge intensive environment. The
contribution of the thesis comes from studying those effects from the financial
markets perspective in Swedish life science firms.
Empirical foundation: 170 IPOs of Swedish life science firms out of which 72 are affiliated with
science parks and 98 non-affiliated.
Conclusion: The results show that there are no long-term (36-month) abnormal returns
from affiliation with a science park. University ownership has no abnormal
return effect. A life science company that joins a science park experience a
statistically significant positive stock return of 3 % on the day of the
announcement.}},
author = {{Isacsson, Eric and Trichkova, Liana}},
language = {{eng}},
note = {{Student Paper}},
title = {{Stock Performance Differences in Swedish Life Science Companies with or without Research-based Science Park Affiliation}},
year = {{2018}},
}