This thesis examines the initial performance of private equity-backed IPOs in relation to non-private-equity-backed IPOs listed on Nasdaq Stockholm and Nasdaq First North Growth Market during the years 2011-2021. It further measures the effect of independent variables on the return after the first day- and first week of trading as well as if the first day performance impacts the first week performance. Previous research finds that IPOs in general are underpriced, and that private equity-backed IPOs tend to perform poorer than non-private-equity-backed IPOs on the first day of trading. Previous research further finds that underpriced IPOs have poor aftermarket performance since the issues usually decline during the first couple of days of trading, subsequently converging towards a lower price rapidly after listing, making it less profitable to invest in an IPO in the aftermarket. Univariate and multivariate analyses test this and the findings indicate that the first day return impacts the first week performance. It also finds that larger private equity-backed IPOs are underpriced and show poorer first day performance compared with larger non private-equity-backed-IPOs. Yet, this is not found to hold for the total sample covering all offering sizes. However, our findings cannot confirm that private equity-backed IPOs would show poorer performance compared with non-private-equity-backed IPOs after the first week of trading. Among the independent variables, the nominal offer price was found to have a significant impact on the first day return alongside with which stock exchange the company was listed on.

Conducting an IPO allows companies to obtain external capital from investors in exchange for ownership stakes. The capital raised in an IPO is intended to finance the company's economic growth and expansion. A challenge regarding IPOs is the pricing of shares. The study aims to investigate whether there is a relationship between industry affiliation and underpricing in IPOs on Nasdaq Stockholm and First North. The study will also examine whether underpricing differs between IPOs on First North and Nasdaq Stockholm and whether there is a relationship between market conditions and underpricing. The sample of the study consists of 197 companies operating in the Data/IT, Real Estate, Finance, Manufacturing Industry, and Pharmaceutical industries between 2017-2023. The study uses a chi 2 test and t-tests in order to answer the research questions.  The results of the study shows that there is a statistically significant relationship between underpricing and the Swedish stock market. The average underpricing was 8,99% for all IPOs in the sample. Furthermore, the study's results indicate that there is no significant relationship between industry affiliation and underpricing. Future research could examine how IPOs in the selected industries perform over time.

本論文探討2007年中國大陸實施以IFRS為基礎的中國會計準則後，是否因為會計準則要求更多資訊的公開，影響新上市公司股票發行折價的幅度。由於中國大陸資本市場有獨特的機制環境，本研究更進一步探討，中國大陸新上市公司在中國會計準則實施後，新上市公司股票發行折價的幅度，是否會因為各省份機制環境背景有不同的影響。實證結果發現，實施中國會計準則後，新股折價的幅度的確顯著降低，新股上市的蜜月期也會因為準則實施後，資訊不對稱的情形降低，有明顯的縮減。亦發現若中國大陸地方機制環境較進步且發達，該地區市場化的程度愈高，新股折價的幅度會也會因資訊更加公開而降低。 / In 2007, China passed the IFRS-based Chinese Accounting Standards (therefore IFRS-based CAS) to converge with IFRS. This paper examines the effect of implementation of IFRS-based CAS on IPO uncerpricing. In addition, there are different institutional features of transition economy from other countries. This paper also examines the effect of the interaction between implementation of IFRS-based CAS and institutional features of transition economy on IPO uncerpricing. The empirical results show that post-2005 IPOs in China are significantly less underpriced, and IPO honeymoon periods have similar outcomes. Furthermore, the results also show that the magnitude of underpricing will be decreased in those provinces with higher degrees of marketization.

Studien genomfördes med syftet att undersöka varför företag tenderar att vara nöjda med sin börsintroduktion trots att den varit underprissatt, vilket bidrar till flertalet negativa konsekvenser. Studien undersöker om underprissättningen kan bero på brist av värderingskompetens eller om företagen själva har incitament till att underprissätta sin börsintroduktion och har tagit hänsyn till handelsplatserna Aktietorget och First North under åren 2013 – 2015. Studien baseras på en kvantitativ metod och har genomförts med inhämtning av sekundärdata samt en enkätundersökning för att undersöka hur företagen resonerar inför en börsintroduktion. Enkätfrågorna har kopplats till befintlig teori samt övriga variabler som torde vara viktiga för företagen inför en börsintroduktion och har sedan analyserats med hjälp av uni-, bi- och multivariat analys. Slutsatsen är att den viktigaste variabeln för ett företag som står inför en börsintroduktion på Aktietorget eller First North är att säkerställa en fulltecknad emission. För att lyckas med det påvisar analysen att företag kan ha incitament till att underprissätta sin egen börsintroduktion. Vidare påvisar analysen att företagen inte strävar efter studiens nämnda incitamentsteorier i någon stor grad och att något signifikant samband mellan teorivariabler och initial avkastning inte finns för studiens respondenter. Författarna tolkar därför incitamentsteorierna som positiva sidoeffekter av att en underprissättning sker och inte som något företagen eftersträvar i första hand vid en börsintroduktion på Aktietorget och First North. / This study investigates why corporates tend to be satisfied with their IPO although it has been underpriced, which contributes to several negative consequences. The study investigates if this depends on the lack of valuation expertise or if the enterprises have incentives to underprice their own IPO. This study was conducted on the Swedish Stock Exchanges Aktietorget and First North during 2013 – 2015. This study takes a quantitative approach and was conducted by using secondary data and a survey to investigate which variables are the most important for an enterprise that is staging an IPO. The survey questions were linked to existing theory and other variables that should be important for an enterprise that is staging an IPO. The results was analyzed through a uni-, bi- and multivariate analysis. The study concludes that the most important variable for an enterprise that is staging an IPO on Aktietorget or First North, is to ensure a fully subscribed stock issue. To be able to ensure this, an enterprise could have incentives to underprice their own IPO. Furthermore, the study conclude that the enterprises does not strive for this study’s described incentive theories in any large extent, and that any significant relation between these variables and underpricing do not exist for this study’s respondents. The authors of this study therefore interprets these theories as positive side effects of an underpricing and not something enterprises that is facing an IPO strive for primarily on Aktietorget and First North.

The purpose of this thesis is to analyze differences between IPOs with integer (e.g. $20,00) and non-integer (e.g. $20,32) offer prices on the post-decimalization US market. Research on IPOs suggests that there are viable differences between, and valuable information within, integer and non-integer prices. However, proposed effects on the information content of prices as a result of decimalization on US markets in 2001 motivates more up-to-date research on the subject. Our findings show that, while integer IPOs have higher initial return, uncertainty and offer price levels, there is no proof of different information content conveyed within integer and non-integer prices on the post-decimalization market. Consequently, suggesting that neither integer or non-integer prices provide valuable information to market participants, and in extension that decimalization may have influenced the IPO market. / Syftet med den här uppsatsen är att analysera skillnader mellan börsnoteringar med teckningskurser formulerade i heltal (t.ex. $20,00) och icke-heltal (t.ex. $20,32) efter decimaliseringen på den amerikanska marknaden. Tidigare studier har funnit stor skillnad mellan, och värdefull information inom, heltals- och icke-heltalskurser. Efter decimaliseringen på den amerikanska marknaden 2001 har studier dock funnit att prisers informationsinnehåll kan ha förändrats, vilket motiverar mer aktuell forskning inom ämnet. Våra resultat visar att även om börsnoteringar med heltals-kurser har högre initial avkastning, osäkerhet och teckningskursnivå, finns det inga tecken på att det är någon skillnad i informationsinnehåll mellan heltals- och icke-heltalskurser på den amerikanska marknaden efter decimaliseringen. Våra resultat antyder att det inte finns någon värdefull information för marknadsaktörer i huruvida en börsnoterings teckningskurs är formulerad i heltal eller icke-heltal, och i förlängningen att decimaliseringen kan ha påverkat marknaden för börsnoteringar.

Att göra en rättvis prissättning av aktier vid en börsintroduktion kan vara svårt och det är i företagens, emissionsinstitutens och investerarnas intresse att detta sker. Rådande informationsasymmetri leder ofta till att aktier underprissätts för att locka investerare att delta vid en börsintroduktion. Syftet med denna uppsats är att undersöka skillnader i aktiekursens utveckling den första handelsdagen på de officiella och de inofficiella börslistorna för att se om varierande krav på informationsutgivning och marknadsvärde har en påverkande faktor. De officiella börslistorna som undersöks är Nasdaq Small, Mid och Large Cap, medan de inofficiella börslistorna är First North och Spotlight. Undersökningens resultat visar att företagens marknadsvärde inte har en betydande påverkan på aktiekursutvecklingen den första handelsdagen då samtliga börslistor på Nasdaq hade en liknande utveckling samt andel underprissatta aktier. Detta trots att kravet på marknadsvärde för att noteras på dessa börslistor skiljer sig markant. De olika börslistornas krav gällande informationsutgivning har visat sig ha en betydande påverkan på aktiekursutvecklingen. Resultatet visar även att inofficiella börslistor har en större spridning av aktiekursutvecklingar där det förekom mycket höga under- och överprissättningar. Detta innebär att investerare som deltar vid en börsintroduktion på First North och Spotlight tar högre risk samt har möjlighet till högre avkastning. / Pricing shares for an upcoming IPO can be difficult and it is in the companies’, theInvestment Bank’s and investor’s interest that the shares are fairly priced. The current information asymmetry often results in companies underpricing their shares to attract investors to participate in an upcoming IPO. The purpose of this paper is to analyze the difference in share performance on the first trading day between different stock lists on the Swedish IPO market. This is done in order to see if the different listing requirements, such as information publishing and market capitalization, are important factors for the underpricing of shares. The different stock lists that have been analyzed are Small, Mid and Large Capfrom Nasdaq OMX Stockholm which are all official stock lists, as well as the Multilateral Trading Facilities (MTF) First North and Spotlight. The result of this study shows that market capitalization doesn’t affect the pricing of shares for upcoming IPOs. This because there was minor differences between the different official stock lists Small, Mid and Large Cap, eventhough the required market capitalization to get listed are very different. The different requirements regarding information publishing however, have shown leads to more inaccurately priced shares. The result shows that MTFs’ such as First North and Spotlight experience a wider range of pricing where the average under- and overpricing är very high.This means a higher risk for the investor, but also the potential for higher returns.

Denna studie presenterar ett branschspecifikt perspektiv som tillägg till forskningen angående faktorer som påverkar underprissättning i börsintroduktioner. Mätningarna har ämnat att undersöka om det föreligger branscher som har avvikande förstadagsavkastning i förhållande till genomsnittet för samtliga branscher. Studien ämnade också att undersöka om avkastningsvariationerna för börsintroduktioner kan förklaras av att bolag tillhör olika branscher. Det underliggande argumentet för hypoteserna byggs från tidigare forskning som stödjer att bolag inom olika branscher står inför olika förutsättningar vilket kan påverka värderingen inför en börsintroduktion. Som tillägg i studiens huvudsakliga forskningsproblem har även en nyare typ av mätning tillämpats för en djupare analys av börsintroduktioner. Denna mätning ger indikationer till investerare om vilken del av börsintroduktioner som genererar mest avkastning. Studiens mätningar visade att det inte rådde signifikanta avkastningsavvikelser för någon bransch i förhållande till genomsnittsavkastningen för samtliga branscher. Mätningarna kunde inte heller påvisa att variationer i förstadagsavkastning förklaras av att bolag tillhör olika branscher då förklaringsgraden för dessa variabler var låga. Däremot påvisades signifikanta skillnader i genomsnittliga avkastningar mellan specifika branscher i samband med studiens regression. Detta indikerar att ytterligare undersökningar borde göras i syfte att undersöka genomsnittliga förstadagsavkastningar mellan specifika branscher. / This paper adds an industry-specific perspective to the research concerning factors that affect underpricing in Initial Public Offerings. The measurements are intended to investigate whether there are industries that have deviating initial returns in relation to the average for all industries. The study also intends to examine whether the return variations for Initial Public Offerings can be explained by the fact that companies belong to different industries. The underlying argument for the hypotheses is built from previous research that supports that companies in different industries are faced with different conditions when they are to be valued for their Initial Public Offerings. In addition to the study's main research problems, a more recent type of measurement has also been applied for a deeper analysis of IPOs. The more recent type of measurement gives indications to investors over which time around an Initial Public Offerings the most money is earned. The study's measurements showed no significant return deviations for any industry in relation to the average return for all industries. Nor could it be demonstrated that variations in the first day return are explained with that companies belong to different industries since the degree of explanation for these variables were low. However, significant differences were found in average returns between specific industries in connection with the study's regression. This indicates that further investigations should be carried out to examining the average first day yield between specific industries.

This dissertation consists of two empirical essays. The first chapter titled: “Hedge Fund Activism and Dual Ownership of U.S. Multinationals”. Harford, Wang & Zhang (2017) conclude that holding high cash balances abroad to avoid US taxes causes internal capital markets and investments distortions. We posit that hedge funds target MNCs with more severe internal capital and agency problems. We demonstrate that upon acquiring dual ownership in these firms, hedge funds reduce internal capital problems and improve investment, especially innovation, efficiencies. To further reduce agency costs of foreign cash holdings, hedge funds engage dual firms in focused acquisitions. These improvements are reflected in superior performances of dual firms relative to non-dual firms. Chapter 2 titled as “Innovation Strategies & IPO Underpricing”. In this chapter, we investigate how a firms’ choice of pre-IPO innovation strategies affect IPO pricing. We differentiate the orientation of the issuing firm’s innovation portfolio in terms of exploitative orientation versus explorative orientation based on citations of patents across technology classes. We introduce a measure of innovation power to generate breakthrough innovations. We show that the issuing firms with greater innovation power, especially firms with exploratory orientation of a patent, significantly decrease underpricing and have the power to bargain a higher offer price. Our results suggest that a higher exploration strategy requires more time to negotiate a higher offer price while more valuable innovation requires less time to bargain at the higher offer price.

Initial public offering (IPO) underpricing is a costly practice that decreases the IPO proceeds accruing to the issuing firms and can derail a firm's growth objectives. The purpose of this correlational study was to determine the relationship between share retention, underwriter reputation, and IPO underpricing among a population of IPOs issued in Jamaica. The efficient market hypothesis served as the theoretical framework for this study. Archived data for 52 IPOs issued in Jamaica from 1986 to 2018 were collected and Spearman's correlation matrix and heteroscedasticity-consistent standard errors regression analysis were applied. The outcomes of this study indicated no significant relationship between share retention and IPO underpricing, α = .1 and α = .05, r = .059, p = .35; however, there was partial acceptance of the alternative hypothesis that underwriter reputation is related to IPO underpricing at α = .1, r = .234, p = .055, but not α = .05. Additionally, underpricing was higher for IPOs supported by the high reputation underwriters, and share retention was a slightly better predictor of IPO underpricing for this group of IPOs, R2 = .02, p = .31 versus R2 = .01, p = .75. Finally, the overall model indicated that the independent variables did not jointly explain IPO underpricing, F(2, 45) = .78, p = .455, R2 = .032. The results of this study might contribute to social change because successful IPOs can increase employment opportunities as well as improve income distribution and socioeconomic indicators for the communities served by IPO firms.

本研究探討台灣新上市股票是否有超額報酬之存在，並進一步探討超額報酬與其影響因素之關係：是否因為內部人持股比例高低，公司最近三年平均每股盈餘，負債比例高低，承銷價格高低，公司總資產大小，公司最近三年淨利變化，上市之後一年之內是否辦理現金增資而有所差異。本研究主要探討新上市公司，其新上市短期與長期異常報酬的解釋因素。 / This sutdy mainly employs empirical methodology. The sample period convers from 1987 to 1995, including 195 samples. The unerpricing regress against EPS (earnings per share), average earning growth rate, debt/equity ratio, firm's size , changes in ownership structure, seasoned new issues within one year subsequent to the IPO (dummy variable), and lottery rate. The findings indicate that the underpricing significantly (95% significant level) correlates with EPS, firm's size, and lottery rate.