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Betting on Rookies - A Study on the Performance of Swedish IPOs

Berg, Oliver LU (2018) NEKH03 20181
Department of Economics
Abstract (Swedish)
An initial public offering, IPO, is the first offering of a company´s shares to the public. Multiple studies have shown that there are certain anomalies tied to IPOs as they often generate high returns on their first day of trading and underperform in the long-run. This paper investigates the occurrence of these anomalies on the Nasdaq Stockholm exchange during 2010-2016. The results indicate that the IPOs yield abnormally high returns on their first trading day and possibly underperforms compared to index in the long-run. Findings also suggests that they could be an inefficient investment as they might not compensate enough for their level of risk.
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author
Berg, Oliver LU
supervisor
organization
course
NEKH03 20181
year
type
M2 - Bachelor Degree
subject
keywords
Initial Public Offering, Abnormal Return Models, Portfolio Evaluation, Anomalies, CAPM
language
English
id
8947636
date added to LUP
2018-07-05 11:22:53
date last changed
2018-07-05 11:22:53
@misc{8947636,
  abstract     = {An initial public offering, IPO, is the first offering of a company´s shares to the public. Multiple studies have shown that there are certain anomalies tied to IPOs as they often generate high returns on their first day of trading and underperform in the long-run. This paper investigates the occurrence of these anomalies on the Nasdaq Stockholm exchange during 2010-2016. The results indicate that the IPOs yield abnormally high returns on their first trading day and possibly underperforms compared to index in the long-run. Findings also suggests that they could be an inefficient investment as they might not compensate enough for their level of risk.},
  author       = {Berg, Oliver},
  keyword      = {Initial Public Offering,Abnormal Return Models,Portfolio Evaluation,Anomalies,CAPM},
  language     = {eng},
  note         = {Student Paper},
  title        = {Betting on Rookies - A Study on the Performance of Swedish IPOs},
  year         = {2018},
}