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Macroeconomic forces behind underpricing

Tugnoli, Andrea LU and Hüfner, Julian LU (2018) NEKN02 20181
Department of Economics
Abstract (Swedish)
The thesis empirically investigates the question whether there is an influence of macroeconomic forces to initial public offering (IPO) underpricing. In addition it tries to find whether unconventional monetary policy has also an impact on underpricing. Thus the thesis tries to find a relationship between macroeconomic variables and the level of IPO underpricing. The variables used as proxies for economic conditions are: interest rate level, GDP growth, consumer confidence index variation and the oil price level. The research is based on IPO data from 20 countries for a sample period of 20 years (1997 – 2017). The so generated data amounts to 7 609 IPO observations. The thesis uses a cross-sectional approach with market adjusted first day... (More)
The thesis empirically investigates the question whether there is an influence of macroeconomic forces to initial public offering (IPO) underpricing. In addition it tries to find whether unconventional monetary policy has also an impact on underpricing. Thus the thesis tries to find a relationship between macroeconomic variables and the level of IPO underpricing. The variables used as proxies for economic conditions are: interest rate level, GDP growth, consumer confidence index variation and the oil price level. The research is based on IPO data from 20 countries for a sample period of 20 years (1997 – 2017). The so generated data amounts to 7 609 IPO observations. The thesis uses a cross-sectional approach with market adjusted first day returns in several model adjustments. The findings are that macroeconomic variables can explain the level of IPO underpricing. Furthermore, the thesis found that there is a negative relationship between interest rate level and IPO underpricing which proves that unconventional monetary policy affects the level of underpricing. (Less)
Please use this url to cite or link to this publication:
author
Tugnoli, Andrea LU and Hüfner, Julian LU
supervisor
organization
course
NEKN02 20181
year
type
H1 - Master's Degree (One Year)
subject
keywords
initial public offering, underpricing, macroeconomic variables, cross-section approach, unconventional monetary policy, IPO underpricing, Financial crisis
language
English
id
8948528
date added to LUP
2018-07-02 15:39:45
date last changed
2018-07-02 15:39:45
@misc{8948528,
  abstract     = {The thesis empirically investigates the question whether there is an influence of macroeconomic forces to initial public offering (IPO) underpricing. In addition it tries to find whether unconventional monetary policy has also an impact on underpricing. Thus the thesis tries to find a relationship between macroeconomic variables and the level of IPO underpricing. The variables used as proxies for economic conditions are: interest rate level, GDP growth, consumer confidence index variation and the oil price level. The research is based on IPO data from 20 countries for a sample period of 20 years (1997 – 2017). The so generated data amounts to 7 609 IPO observations. The thesis uses a cross-sectional approach with market adjusted first day returns in several model adjustments. The findings are that macroeconomic variables can explain the level of IPO underpricing. Furthermore, the thesis found that there is a negative relationship between interest rate level and IPO underpricing which proves that unconventional monetary policy affects the level of underpricing.},
  author       = {Tugnoli, Andrea and Hüfner, Julian},
  keyword      = {initial public offering,underpricing,macroeconomic variables,cross-section approach,unconventional monetary policy,IPO underpricing,Financial crisis},
  language     = {eng},
  note         = {Student Paper},
  title        = {Macroeconomic forces behind underpricing},
  year         = {2018},
}