| dc.description.abstract | This thesis examines the direct cost of raising equity for firms listed on Oslo stock exchange in the period 2006-2011. US research indicates a cost of raising equity about 4-5% of the total amount issued. According to our panel data analysis the Norwegian cost is 5,62 %. This is significantly lower than the 14,6% earlier studies made on Norwegian initial public offerings in the period 1998-2008.
We do not find a significant time variable that can provide proof of changes in the direct cost level in the period. We do however find support for variations in the cost level, caused by changes in the financial market in Norway. Our findings indicate that the average direct costs falls with 0,00861 percentage points per 100 points the OSEBX increases. Finally we find that the relative cost level decrease with size of the issue. The data indicates a reduction of 0,366 percentage points per billion NOK raised in the issue.
We also find evidence that foreign financial institutions are significantly more expensive managers than the Norwegian ones, in the period 2006-2011. Norwegian specialists cannot charge a higher fee than their competitors in the Norwegian equity market. | no_NO |
