This paper examines the long-run aftermarket performance of Swedish IPOs between 2000- 2016, including two market downturns (the burst of IT and housing bubble). The main objective is to investigate whether performance is explained in terms of firm maturity, which is the main contribution to existing literature. Hence, the final sample of 96 IPOs is ranked by the level of RE/TA ratio, a categorization defined by the life-cycle theory of dividend payouts proposed by DeAngelo et al. (2006). To assess the long-run performance of the different IPO portfolios, two methodologies are applied: BHAR and the Fama-French Three Factor regression. The main finding is that the Swedish IPOs underperform their benchmark reference portfolios 12, 24 and 36 months after the offering. Young IPOs, with low RE/TA, outperform on a one- year basis while no significant results were found for old IPOs with high RE/TA. On a longer term, young IPOs underperform their benchmarks while old IPOs outperform three years after the initial issue. There is no support that younger IPOs exhibit a higher level of underperformance in comparison to older IPOs in the long-run.

This thesis consists of five individual essays and an introductory chapter. The essays are all in the field of industrial dynamics and more specifically focus on firm entry and exit in Swedish industrial sectors. The essays mainly contribute to the empirical literature on entry and exit. In four of the five essays, panel data methods are used in the empirical investigation. The first essay presents the patterns of entry and exit in industrial sectors in Sweden and studies the importance of different determinants of entry and exit rates in industries. The second essay focuses on the relationship between entry and exit. The third essay has a regional perspective, focusing on regional determinants of entry and exit. It also investigates the importance of the differences in industry structure for differences in entry and exit rates across regions. The fourth chapter uses the theory of product life cycle to investigate how knowledge intensity differs in entering and exiting firms in different stages of the product life cycle. The fifth and last essay focuses on the importance of firm demography, in terms of firm size and age, for the decision to perform process R&D, product R&D or combine process with product R&D.