The impact of certification on the reduction of information asymmetry, during and post-IPO
(2023) BUSN79 20231Department of Business Administration
- Abstract
- Purpose: The purpose of this study is to investigate the existence of information asymmetry displayed in the initial return, and post-IPO financing. Additionally, how sponsor certification influences IPOs and in the post-IPO financing as a means to reduce information asymmetry.
Methodology: The study was conducted based on a quantitative research method, followed by a deductive approach, which includes the collection and evaluation of secondary data and testing the hypothesis that emerges from it.
Theoretical perspective: Research studies and theories regarding the information asymmetry, initial returns and the impact of sponsor certification during and post-IPO financing are presented in the theoretical framework section.
... (More) - Purpose: The purpose of this study is to investigate the existence of information asymmetry displayed in the initial return, and post-IPO financing. Additionally, how sponsor certification influences IPOs and in the post-IPO financing as a means to reduce information asymmetry.
Methodology: The study was conducted based on a quantitative research method, followed by a deductive approach, which includes the collection and evaluation of secondary data and testing the hypothesis that emerges from it.
Theoretical perspective: Research studies and theories regarding the information asymmetry, initial returns and the impact of sponsor certification during and post-IPO financing are presented in the theoretical framework section.
Empirical foundation: The empirical material has been collected from the Bloomberg database which consisted of 222 IPOs conducted between 2010-2019 in the Swedish financial market. The data has been filtered out for; offer size, offer price, firm age, industry, debt to equity ratio, net change in equity, Venture Capital backed, Private equity backed.
Conclusion: The study indicates that asymmetric information influences the initial return of the IPO and the post-IPO financing decisions. Also there is a positive relationship between PE funds and initial return, which is a contradictory outcome to former research. Moreover, there is a positive significant relationship of PE sponsorship to the net change in equity. Extended discussion about the conclusions will be conducted in the following sections. (Less)
Please use this url to cite or link to this publication:
http://lup.lub.lu.se/student-papers/record/9132085
- author
- Sinaj, Paulina LU and Uka, Rina LU
- supervisor
-
- Marco Bianco LU
- organization
- alternative title
- Private Equity and Venture Capitalist firms’ influence on Initial Return and Post Financing in the Swedish Market
- course
- BUSN79 20231
- year
- 2023
- type
- H1 - Master's Degree (One Year)
- subject
- keywords
- Initial Public Offering, Initial return, Information asymmetry, Venture Capital, Private Equity, Net change in equity
- language
- English
- id
- 9132085
- date added to LUP
- 2023-09-12 16:05:59
- date last changed
- 2023-09-12 16:05:59
@misc{9132085,
abstract = {{Purpose: The purpose of this study is to investigate the existence of information asymmetry displayed in the initial return, and post-IPO financing. Additionally, how sponsor certification influences IPOs and in the post-IPO financing as a means to reduce information asymmetry.
Methodology: The study was conducted based on a quantitative research method, followed by a deductive approach, which includes the collection and evaluation of secondary data and testing the hypothesis that emerges from it.
Theoretical perspective: Research studies and theories regarding the information asymmetry, initial returns and the impact of sponsor certification during and post-IPO financing are presented in the theoretical framework section.
Empirical foundation: The empirical material has been collected from the Bloomberg database which consisted of 222 IPOs conducted between 2010-2019 in the Swedish financial market. The data has been filtered out for; offer size, offer price, firm age, industry, debt to equity ratio, net change in equity, Venture Capital backed, Private equity backed.
Conclusion: The study indicates that asymmetric information influences the initial return of the IPO and the post-IPO financing decisions. Also there is a positive relationship between PE funds and initial return, which is a contradictory outcome to former research. Moreover, there is a positive significant relationship of PE sponsorship to the net change in equity. Extended discussion about the conclusions will be conducted in the following sections.}},
author = {{Sinaj, Paulina and Uka, Rina}},
language = {{eng}},
note = {{Student Paper}},
title = {{The impact of certification on the reduction of information asymmetry, during and post-IPO}},
year = {{2023}},
}