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The effect of board diversity and independence on IPO underpricing - An investigation on the Swedish market

Eriksen, Marcus LU and Särnmo Åberg, Johan LU (2019) BUSN79 20191
Department of Business Administration
Abstract
This paper aims to study the effect that board independence and diversity have on IPO underpricing. It is expected that through signalling, these factors might have a negative relationship with underpricing. Listings between 2015-01-01 - 2018-12-31 on the two Swedish stock exchanges Nasdaq Stockholm and Nasdaq First North are investigated and the final sample consisted of 188 observations. The quantitative research methodology was done using an OLS regression. The regression showed no statistical significance for the relationship between board diversity and underpricing. However, a weakly statistically significant positive relationship was found between Independence and Underpricing. Three interaction terms were created in order to... (More)
This paper aims to study the effect that board independence and diversity have on IPO underpricing. It is expected that through signalling, these factors might have a negative relationship with underpricing. Listings between 2015-01-01 - 2018-12-31 on the two Swedish stock exchanges Nasdaq Stockholm and Nasdaq First North are investigated and the final sample consisted of 188 observations. The quantitative research methodology was done using an OLS regression. The regression showed no statistical significance for the relationship between board diversity and underpricing. However, a weakly statistically significant positive relationship was found between Independence and Underpricing. Three interaction terms were created in order to investigate possible relationships between independence and diversity on underpricing. An interaction effect with weak statistical significance was found between Independence from company and Diversity. (Less)
Popular Abstract
This paper aims to study the effect that board independence and diversity have on IPO underpricing. It is expected that through signalling, these factors might have a negative relationship with underpricing. Listings between 2015-01-01 - 2018-12-31 on the two Swedish stock exchanges Nasdaq Stockholm and Nasdaq First North are investigated and the final sample consisted of 188 observations. The quantitative research methodology was done using an OLS regression. The regression showed no statistical significance for the relationship between board diversity and underpricing. However, a weakly statistically significant positive relationship was found between Independence and Underpricing. Three interaction terms were created in order to... (More)
This paper aims to study the effect that board independence and diversity have on IPO underpricing. It is expected that through signalling, these factors might have a negative relationship with underpricing. Listings between 2015-01-01 - 2018-12-31 on the two Swedish stock exchanges Nasdaq Stockholm and Nasdaq First North are investigated and the final sample consisted of 188 observations. The quantitative research methodology was done using an OLS regression. The regression showed no statistical significance for the relationship between board diversity and underpricing. However, a weakly statistically significant positive relationship was found between Independence and Underpricing. Three interaction terms were created in order to investigate possible relationships between independence and diversity on underpricing. An interaction effect with weak statistical significance was found between Independence from company and Diversity. (Less)
Please use this url to cite or link to this publication:
author
Eriksen, Marcus LU and Särnmo Åberg, Johan LU
supervisor
organization
alternative title
The effect of board diversity and independence on IPO underpricing - An investigation on the Swedish market
course
BUSN79 20191
year
type
H1 - Master's Degree (One Year)
subject
keywords
Diversity, Independence, Board characteristics, IPO underpricing, Regression analysis
language
English
id
8986981
date added to LUP
2019-09-30 14:01:02
date last changed
2019-09-30 14:01:02
@misc{8986981,
  abstract     = {This paper aims to study the effect that board independence and diversity have on IPO underpricing. It is expected that through signalling, these factors might have a negative relationship with underpricing. Listings between 2015-01-01 - 2018-12-31 on the two Swedish stock exchanges Nasdaq Stockholm and Nasdaq First North are investigated and the final sample consisted of 188 observations. The quantitative research methodology was done using an OLS regression. The regression showed no statistical significance for the relationship between board diversity and underpricing. However, a weakly statistically significant positive relationship was found between Independence and Underpricing. Three interaction terms were created in order to investigate possible relationships between independence and diversity on underpricing. An interaction effect with weak statistical significance was found between Independence from company and Diversity.},
  author       = {Eriksen, Marcus and Särnmo Åberg, Johan},
  keyword      = {Diversity,Independence,Board characteristics,IPO underpricing,Regression analysis},
  language     = {eng},
  note         = {Student Paper},
  title        = {The effect of board diversity and independence on IPO underpricing - An investigation on the Swedish market},
  year         = {2019},
}