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Underpricing in the Swedish IPO market: Can investors earn abnormal returns by investing in IPOs?
Jönköping University, Jönköping International Business School.
2012 (English)Independent thesis Advanced level (degree of Master (One Year)), 20 credits / 30 HE creditsStudent thesis
Abstract [en]

This thesis examines underpricing in Sweden using unique data on the 185 firms going public through initial public offerings (IPOs) and listing on the Stockholm Stock Exchange between 1994-2011. The average initial return in the Swedish IPO market adjusted for index movements is 11.49% but underpricing of individual IPOs was as high as 241.04%. Further, time trends in underpricing, the level of average initial returns effect on IPO supply underpricing and differences between sectors, segments and investment banks are examined. Finally, it is argued that investors must be rewarded for taking the high risk associated with IPO investing and that the average initial return of 11.49% is a reasonable compensation for that risk.

Place, publisher, year, edition, pages
2012. , 45 p.
Keyword [en]
Initial Public Offerings (IPOs), IPO underpricing in Sweden, time trends in IPO pricing, underpricing patterns.
National Category
Business Administration
Identifiers
URN: urn:nbn:se:hj:diva-18404OAI: oai:DiVA.org:hj-18404DiVA: diva2:532595
Uppsok
Social and Behavioural Science, Law
Supervisors
Examiners
Available from: 2012-08-13 Created: 2012-06-11 Last updated: 2012-08-13Bibliographically approved

Open Access in DiVA

Underpricing in the Swedish IPO market: Can investors earn abnormal returns by investing in IPOs?(3249 kB)1703 downloads
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File name FULLTEXT01.pdfFile size 3249 kBChecksum SHA-512
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Type fulltextMimetype application/pdf

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CiteExportLink to record
Permanent link

Direct link
Cite
Citation style
  • apa
  • harvard1
  • ieee
  • modern-language-association-8th-edition
  • vancouver
  • Other style
More styles
Language
  • de-DE
  • en-GB
  • en-US
  • fi-FI
  • nn-NO
  • nn-NB
  • sv-SE
  • Other locale
More languages
Output format
  • html
  • text
  • asciidoc
  • rtf