Skip to main content

LUP Student Papers

LUND UNIVERSITY LIBRARIES

The influence of Green IPOs on underpricing

Brejwo, Marta Celina LU (2024) NEKP01 20241
Department of Economics
Abstract
This study aims to examine the relationship between green IPOs and their influence on underpricing during the years 2013 through 2022. The sample uses cross-sectional data covering 2 768 observations, where green IPOs are identified based on their LSEG emissions score. The study uses an OLS model with control variables for year, country as well as sector, along with two different interaction variables where the emissions score interacts with region and year. The regressions were performed on an aggregate, regional and annual level. The findings speak in favor of the emissions score to have a negative effect on first day returns, resulting in lower underpricing, amongst strictly non-green as well as green and non-green IPOs combined in the... (More)
This study aims to examine the relationship between green IPOs and their influence on underpricing during the years 2013 through 2022. The sample uses cross-sectional data covering 2 768 observations, where green IPOs are identified based on their LSEG emissions score. The study uses an OLS model with control variables for year, country as well as sector, along with two different interaction variables where the emissions score interacts with region and year. The regressions were performed on an aggregate, regional and annual level. The findings speak in favor of the emissions score to have a negative effect on first day returns, resulting in lower underpricing, amongst strictly non-green as well as green and non-green IPOs combined in the European region. Additionally, the results speak in favor of green European PE-backed IPOs to experience less underpricing, due to their negative effect on first day returns. The remaining regression results however speak in favor of rejecting the hypotheses of green IPOs experiencing less underpricing as no statistically significant results could be found amongst these, regardless of region or year. (Less)
Please use this url to cite or link to this publication:
author
Brejwo, Marta Celina LU
supervisor
organization
course
NEKP01 20241
year
type
H2 - Master's Degree (Two Years)
subject
keywords
Green IPOs, ESG, CSR, Environmental Sustailability, Underpricing
language
English
id
9155366
date added to LUP
2024-10-01 13:18:01
date last changed
2024-10-01 13:18:01
@misc{9155366,
  abstract     = {{This study aims to examine the relationship between green IPOs and their influence on underpricing during the years 2013 through 2022. The sample uses cross-sectional data covering 2 768 observations, where green IPOs are identified based on their LSEG emissions score. The study uses an OLS model with control variables for year, country as well as sector, along with two different interaction variables where the emissions score interacts with region and year. The regressions were performed on an aggregate, regional and annual level. The findings speak in favor of the emissions score to have a negative effect on first day returns, resulting in lower underpricing, amongst strictly non-green as well as green and non-green IPOs combined in the European region. Additionally, the results speak in favor of green European PE-backed IPOs to experience less underpricing, due to their negative effect on first day returns. The remaining regression results however speak in favor of rejecting the hypotheses of green IPOs experiencing less underpricing as no statistically significant results could be found amongst these, regardless of region or year.}},
  author       = {{Brejwo, Marta Celina}},
  language     = {{eng}},
  note         = {{Student Paper}},
  title        = {{The influence of Green IPOs on underpricing}},
  year         = {{2024}},
}