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Long-term IPO performance in Sweden: A Two-Decade Analysis

Semenas, Simona LU (2024) NEKP01 20241
Department of Economics
Abstract (Swedish)
This study examines the long-term performance of Swedish Initial Public Offerings (IPOs) from 2000 to 2023. Employing Cumulative Abnormal Returns (CAR) and Buy-and-Hold Abnormal Returns (BHAR) methodologies, this study analyze the impact of market cycles on IPO returns. The findings reveal overperformance of Swedish IPOs during a three year period. Additionally, the research analyzes the influence of company-specific factors, including size, age, debt-to-equity, first day returns, hot markets and industries on long-term performance. The analysis shows that company size positively affects long-term IPO performance, while firm age, debt-to-equity ratio, and initial underpricing do not have a significant impact. IPOs from hot market periods... (More)
This study examines the long-term performance of Swedish Initial Public Offerings (IPOs) from 2000 to 2023. Employing Cumulative Abnormal Returns (CAR) and Buy-and-Hold Abnormal Returns (BHAR) methodologies, this study analyze the impact of market cycles on IPO returns. The findings reveal overperformance of Swedish IPOs during a three year period. Additionally, the research analyzes the influence of company-specific factors, including size, age, debt-to-equity, first day returns, hot markets and industries on long-term performance. The analysis shows that company size positively affects long-term IPO performance, while firm age, debt-to-equity ratio, and initial underpricing do not have a significant impact. IPOs from hot market periods tend to underperform, and industry effects vary, with some sectors showing poorer returns than others. (Less)
Please use this url to cite or link to this publication:
author
Semenas, Simona LU
supervisor
organization
course
NEKP01 20241
year
type
H2 - Master's Degree (Two Years)
subject
keywords
Initial Public Offering, Long-Term Performance, Market Efficiency
language
English
id
9174319
date added to LUP
2024-10-01 13:20:09
date last changed
2024-10-01 13:20:09
@misc{9174319,
  abstract     = {{This study examines the long-term performance of Swedish Initial Public Offerings (IPOs) from 2000 to 2023. Employing Cumulative Abnormal Returns (CAR) and Buy-and-Hold Abnormal Returns (BHAR) methodologies, this study analyze the impact of market cycles on IPO returns. The findings reveal overperformance of Swedish IPOs during a three year period. Additionally, the research analyzes the influence of company-specific factors, including size, age, debt-to-equity, first day returns, hot markets and industries on long-term performance. The analysis shows that company size positively affects long-term IPO performance, while firm age, debt-to-equity ratio, and initial underpricing do not have a significant impact. IPOs from hot market periods tend to underperform, and industry effects vary, with some sectors showing poorer returns than others.}},
  author       = {{Semenas, Simona}},
  language     = {{eng}},
  note         = {{Student Paper}},
  title        = {{Long-term IPO performance in Sweden: A Two-Decade Analysis}},
  year         = {{2024}},
}