How do long-run performance and underpricing of IPOs differ from private equity-backed, venture capital-backed and non-private equity-backed companies?
dc.contributor.author | Wara, Adrian | |
dc.contributor.author | Westbye, Joakim | |
dc.date.accessioned | 2023-01-02T12:34:50Z | |
dc.date.available | 2023-01-02T12:34:50Z | |
dc.date.issued | 2022 | |
dc.identifier.uri | https://hdl.handle.net/11250/3040306 | |
dc.description | Masteroppgave(MSc) in Master of Science in Finance/(Financial Economics) - Handelshøyskolen BI,2022 | en_US |
dc.description.abstract | This paper investigates initial returns from the first-day, first-week, and firstmonth closing price to capture the underpricing of an initial public offering during two different market cycles, namely hot- and cold-issue markets. Furthermore, it investigates the long-run performance using buy-and-hold abnormal returns and cumulative abnormal returns. The data sample consists of 116 private equitybacked companies, 99 venture capital-backed companies, and 843 non-private equity-backed companies at New York Stock Exchange, Nasdaq Global Markets, and London Stock Exchange during 01.01.2000-31.12.2021. We find the first day underpricing for All Firms, PE, VC, and NPE at 16.9%, 16.4%, 16.2%, and 17.1%, respectively. We find significant evidence that larger firms outperform smaller firms in the long run in the terms of market capitalization at offer. | en_US |
dc.language.iso | eng | en_US |
dc.publisher | Handelshøyskolen BI | en_US |
dc.subject | finans finance finacial economics | en_US |
dc.title | How do long-run performance and underpricing of IPOs differ from private equity-backed, venture capital-backed and non-private equity-backed companies? | en_US |
dc.type | Master thesis | en_US |
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Master of Science [1621]