Skip to main content

LUP Student Papers

LUND UNIVERSITY LIBRARIES

The Key to a Safe IPO

Truedsson, Oskar LU ; Bergström, Hugo LU and Adolfsson, Elsa LU (2022) FEKH89 20212
Department of Business Administration
Abstract
Purpose:
The purpose of the study is to examine the implications of a lock-up
agreement for the first day return and long-term performance on the Nordic
markets, during the years of 2010-2021. The study aims to contribute new
insights to investors and stakeholders about lock-up agreements' implication
and role in initial public offerings.

Methodology:
The authors of this study have chosen to use a quantitative method and a deductive approach as methodology for this study.

Theoretical perspectives:
The study is conducted on the basis of previous research regarding lock-up agreements, long-term performance and initial public offerings. This is combined with theories of efficient markets, information asymmetry and the... (More)
Purpose:
The purpose of the study is to examine the implications of a lock-up
agreement for the first day return and long-term performance on the Nordic
markets, during the years of 2010-2021. The study aims to contribute new
insights to investors and stakeholders about lock-up agreements' implication
and role in initial public offerings.

Methodology:
The authors of this study have chosen to use a quantitative method and a deductive approach as methodology for this study.

Theoretical perspectives:
The study is conducted on the basis of previous research regarding lock-up agreements, long-term performance and initial public offerings. This is combined with theories of efficient markets, information asymmetry and the agent-principal problem.

Empirical foundation:
The empirical data consists of information from 326 initial public offerings.
Information and firm prospectus has been gathered through FactSet and the
firm's websites.

Conclusions:
Findings conclude that lock-up agreements and its length have no
significant effect on the initial return and long-run performance of IPOs in
the Nordic region. Rather it is suggested that the characteristics of the
Nordic market in terms of shareholder protection and high level of corporate
governance undermines any potential impact of a lock-up agreement. Thus,
it can not be used as an indication for the success of an IPO in terms of an
investor's perspective. (Less)
Please use this url to cite or link to this publication:
author
Truedsson, Oskar LU ; Bergström, Hugo LU and Adolfsson, Elsa LU
supervisor
organization
course
FEKH89 20212
year
type
M2 - Bachelor Degree
subject
keywords
IPO, Lock-up agreement, Initial return, Long term performance, Nasdaq Nordic, Oslo börs
language
English
id
9074853
date added to LUP
2022-02-23 12:29:24
date last changed
2022-02-23 12:29:24
@misc{9074853,
  abstract     = {{Purpose: 
The purpose of the study is to examine the implications of a lock-up
agreement for the first day return and long-term performance on the Nordic
markets, during the years of 2010-2021. The study aims to contribute new
insights to investors and stakeholders about lock-up agreements' implication
and role in initial public offerings.

Methodology: 
The authors of this study have chosen to use a quantitative method and a deductive approach as methodology for this study.

Theoretical perspectives: 
The study is conducted on the basis of previous research regarding lock-up agreements, long-term performance and initial public offerings. This is combined with theories of efficient markets, information asymmetry and the agent-principal problem.

Empirical foundation:
The empirical data consists of information from 326 initial public offerings.
Information and firm prospectus has been gathered through FactSet and the
firm's websites.

Conclusions:
Findings conclude that lock-up agreements and its length have no
significant effect on the initial return and long-run performance of IPOs in
the Nordic region. Rather it is suggested that the characteristics of the
Nordic market in terms of shareholder protection and high level of corporate
governance undermines any potential impact of a lock-up agreement. Thus,
it can not be used as an indication for the success of an IPO in terms of an
investor's perspective.}},
  author       = {{Truedsson, Oskar and Bergström, Hugo and Adolfsson, Elsa}},
  language     = {{eng}},
  note         = {{Student Paper}},
  title        = {{The Key to a Safe IPO}},
  year         = {{2022}},
}