This research aims to explore if and to what extent the IPO-Year R&D investments of 32 Application Software companies return value, as measured through stock performance. By utilizing “Ordinary Least Squares Analysis” and the “Fama-French Three Factor Model,” this research explores how the initial R&D investments in “IPO-Year” impact stock returns during the three years post-IPO. This study is purposed to discover if and how long it takes for the initial R&D investment in the IPO-Year to materialize into stock performance for Application Software companies. However, the research and analysis indicates that R&D expenditures in an IPO-Year is not a statistically significant variable in influencing stock performance.

The prospect of earning extraordinary returns drives the allure of investing in new companies through IPOs. However, this approach may be flawed due to market conditions, information asymmetry, and behavioral biases. Past research supports evidence of the long-term underperformance of IPOs compared to the market index. Despite the substantial research on IPO performance, limited studies have focused on the long-term performance of IPOs in Sweden and among industries, particularly from 2010 to 2019. The study aims to address the existing knowledge gap and provide investors with insights into the long-term performance of Swedish IPOs and their associated industries. By analyzing IPOs, the study enhances the risk-reward understanding, informs retail investment decisions, and promotes stock market transparency in Sweden. The research employed a quantitative method with a deductive approach. Stock prices 12 and 36 months after the IPO date and prospect prices were collected as the data set. The data were analyzed using statistical applications to assess the significance of the research findings, employing a One-Sample T-test and Kruskal-Wallis H-test. The findings indicate that the IPOs in our sample underperformed the selected index, OMXSGI, with an average underperformance of 7.84% for 12 months and 12.32% for 36 months. The results are in line with previous research of similar markets as Sweden. Additionally, performance varied among industries, with the technology sector performing the best and consumer staples performing the worst.

論文提要 本研究目的在於探討新上市公司在申請上市時所編製的強制性財務預測與上市後業績變動及盈餘管理的相關性。 本研究採實證之方式，選取民國80年6月到86年底之新上市公司曾在上市當年及上市後三年內公告或更新財務預測者。利用迴歸分析、卡方分析、T檢定及Wilcoxon Rank Sum 檢定，而研究結果如下： 1. 由於新上市申請的相關規定，若公司預期本身經營績效不佳時，會提出較為樂觀之財務預測，以利上市審查。 2. 新上市公司上市後的經營績效變異程度與財務預測的過度樂觀程度呈現正相關，但是當樂觀程度定義為來自營業活動的現金流量時，並不顯著，可能是公司僅需注意營業毛利與稅前淨利是否達成，對現金流量之預測較沒有達成的壓力所致。 3. 新上市公司提出之強制性財務預測過於樂觀者在上市前盈餘管理之現象並不顯著，其可能原因在於本研究採用之盈餘管理定義僅限於與營業有關之裁決性應計項目，而無法看出公司利用其他項目來進行盈餘管理。 4. 上市前從事盈餘管理之公司，除了現金流量之準確度不明顯外，業績衰退和業績成長公司在財務預測準確度上明顯不同，但是在財務預測更新行為上並無顯荖不同。 5. 新上市公司面臨更新財務預測時，會傾向利用應計項目操縱來規避調整。 / The Relationship among Change in Operating Perfomance, Earning Management and the Revision of Mandatory Forecasts Abstract This research aims to examine the relationship among change in initial public offering firms, earning management and the revision of mandatory forecasts. This study contends that the forecast revisions should significantly correlate with changes in IPO's performance. The samples of this study range from June 30th, 1991 to December 31st , 1997. The empirical results of this study can be summarized as follows: O Due to related regulations, if IPO firms predict its insufficient operation performance, the mandatory forecasts of IPO firms are usually optimistic, for the convenience of examination. O The IPO firms' variation degree of operation efficiency and the over-optimistic forecasts are correlated positively. O If IPO firms' mandatory forecasts are over-optimistic, the earning management is not correlated significantly. O Before public offering, among the firms which manipulate earnings, there is significant difference between firms with declining performance and firms with growing performance. O When the IPO firms face revisions of forecasts, the firms would tend to manipulate accruals to avoid revisions.