Information asymmetries and the underpricing of European IPOs
(2020) NEKN02 20201Department of Economics
- Abstract
- IPO underpricing is an international phenomenon that has been documented by numerous authors. However, the IPO market keeps evolving. Since the decline in IPO volume following the “dot-com bubble”, there have been periods with high IPO volume, as well as periods with low IPO volume. This paper uses a linear regression model and t-tests to investigate underpricing of European IPOs between 2001 and 2019. The paper is formed around asymmetric information theories and shows that the level of underpricing tends to be greater for IPOs with certain firm and IPO characteristics that are associated with higher degree of information asymmetries. However, very limited evidence on IPO determinants is found.
Please use this url to cite or link to this publication:
http://lup.lub.lu.se/student-papers/record/9029102
- author
- Balsom, Sebastian LU
- supervisor
- organization
- course
- NEKN02 20201
- year
- 2020
- type
- H1 - Master's Degree (One Year)
- subject
- keywords
- Initial public offerings, Information asymmetries, Initial returns, Cyclicality, European IPO markets
- language
- English
- id
- 9029102
- date added to LUP
- 2021-03-16 15:10:46
- date last changed
- 2021-03-16 15:10:46
@misc{9029102, abstract = {{IPO underpricing is an international phenomenon that has been documented by numerous authors. However, the IPO market keeps evolving. Since the decline in IPO volume following the “dot-com bubble”, there have been periods with high IPO volume, as well as periods with low IPO volume. This paper uses a linear regression model and t-tests to investigate underpricing of European IPOs between 2001 and 2019. The paper is formed around asymmetric information theories and shows that the level of underpricing tends to be greater for IPOs with certain firm and IPO characteristics that are associated with higher degree of information asymmetries. However, very limited evidence on IPO determinants is found.}}, author = {{Balsom, Sebastian}}, language = {{eng}}, note = {{Student Paper}}, title = {{Information asymmetries and the underpricing of European IPOs}}, year = {{2020}}, }