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dc.contributor.authorMyklevold, Christoffer
dc.contributor.authorKise, Haakon
dc.date.accessioned2018-01-12T09:49:42Z
dc.date.available2018-01-12T09:49:42Z
dc.date.issued2017
dc.identifier.urihttp://hdl.handle.net/11250/2477137
dc.descriptionMasteroppgave(MSc) in Master of Science in Business, Finance - Handelshøyskolen BI, 2017nb_NO
dc.description.abstractOn Oslo Stock Exchange, there are mainly two pricing mechanisms that are being used when pricing an IPO, these being book-building and fixed-price. As there do not exist much research on which of these two are the more superior pricing mechanism when pricing a Norwegian IPO, we want to test empirically which of these two are the more efficient pricing mechanism regarding the level and variance of underpricing. In our research, we have gathered data from 125 IPOs from February 2000 until June 2017, where we have limited ourselves to only include data from Oslo Stock Exchange (excluding Axess and Merkur). We used a paired t-test to identify a 1 percent significant level of underpricing of 4,29 and 3,9 percent of book-building and fixed-price IPOs, respectively. We also compared the two pricing mechanisms by using Mood’s Median Test, Levene’s Test of difference in variance and several multivariate regression models. We also compared crosssectional differences within the subsamples with respect to different firm-, issueand market characteristics. This research have us concluding that book-building do dominate fixed price regarding pricing efficiency, where we found that it produces lower conditional variance (variance after controlling for firm-, issue-, and market effects) and are better at incorporating market conditions prior to the IPO.nb_NO
dc.language.isoengnb_NO
dc.publisherBI Norwegian Business Schoolnb_NO
dc.subjectfinancenb_NO
dc.subjectfinansnb_NO
dc.titleComparing the efficiency of pricing mechanisms in Norwegian iposnb_NO
dc.typeMaster thesisnb_NO


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