Is it possible that a firm's ownership structure may affect the underpricing in an initial public offering?
Master thesis

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Date
2014-02-10Metadata
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- Master of Science [1822]
Abstract
This thesis examines the relationship between the underpricing of a firm in a
public listing due to the ownership structure of the firm. The firms studied are
listed on the Norwegian Stock Exchange. The data contains public listings from
2001-2011. The thesis uses the Ordinary Least Squares (OLS) procedure to test
for the relationship. The findings indicate that the ownership concentration, owner
type and the board size of the firm have an effect on the underpricing in an IPO.
The board size and the ownership concentration will have a positive effect on
underpricing. Further institutional, government and international ownership seems
to have a negative effect with the underpricing of a firm. In other words this thesis
finds support for the ownership structure having an effect on underpricing of IPOs
in the Norwegian Stock Market.
Description
Masteroppgave(MSc) in Master of Science in Business, Finance - Handelshøyskolen BI, 2014