I considered on initial public offerings in my thesis. The thesis describes signification of initial public offerings including its advantages and disadvantages, informs about its specifications and recommends to investors, what they should focus on, if they think of such type of investment.

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本篇研究專注於首次公開發行公司上市櫃初始交易日之異常報酬與新聞情緒兩 者間之關係。本研究建立情緒字典以判別新聞之正負情緒,並過濾出與首次公開發 行有關之新聞,利用本研究建立之情緒字典以過濾出正負情緒之詞組。利用正負情 緒詞組數量計算出三種新聞情緒變數,並採實證研究方法檢測三種新聞情緒變數與 首次公開發行公司之初始交易日之異常報酬兩者間之關係。根據本研究之實證結果, 發現初始交易日之前的新聞能影響首次公開發行之異常報酬,而相關新聞之情緒語 調亦和異常報酬有關。此外,本研究亦檢測三種情緒變數和三種傳統變數之交乘項 對異常報酬之影響,發現公司規模大小與首日交易量與情緒變數之交乘項會對初始 交易日之異常報酬有影響。總言論之,本研究對新聞會影響首次公開發行初始交易 日之異常報酬提供了實證證據。 / This study focuses on the relation between IPOs’ abnormal returns on initial trading days and news sentiment. To identify the tone of news, sentiment dictionary was established for this study, and news regarding IPO firms was picked out to count positive and negative words and phrases based on the sentiment dictionary. Using quantities of positive and negative words and phrases, three news variables were adopted and calculated. And linear regression was utilized to investigate the relation between IPOs’ abnormal returns on initial trading days and news sentiment. According to empirical results, I find that news prior to the IPO’s initial trading day can affect IPOs’ abnormal returns. The number of negative words and phrases is negatively related to the abnormal returns; the tone of news is positively related to the abnormal returns. Furthermore, I also investigated whether interaction terms of news variables and three control variables are related to abnormal returns on IPOs’ initial trading days. I find that interaction terms of the natural logarithm of firm size and two news variables and interaction terms of the natural logarithm of first-day trading volume and two news variables are related to abnormal returns. Overall, there is evidence that news can influence IPOs’ abnormal returns on initial trading days.

本研究配合台灣制度，以模型推導方式研究IPO承銷機制選擇(競價拍賣與公開申購)之決定因素，並以台灣資料進行實證分析。本文考慮市場因素與投資人意見差異，以發行者之觀點進行分析。模型之預測為，當投資人意見差異程度較大、承銷規模較大、或是市場情況較佳時，發行者會選擇以競價拍賣銷售新股。 實證結果顯示，發行者於選擇承銷機制時，不僅考慮市場因素，亦會參考公司特性與發行特性，此結果與本模型之預測一致。本研究亦發現，台灣之競價拍賣制度，相較於公開申購方式，並無法更有效控制折價程度；如果發行者所選用的承銷方式，不適合市場情況、公司特性或發行特性，將會使公司的IPO承受較多的折價。 / This thesis develops and tests a theoretical rationale on the choice of IPO selling methods, discriminatory auctions versus fixed-price offerings, in Taiwan. We incorporate market conditions and investors’ divergence of opinions into the model from the issuer’s point of view. Our model predicts that when the extent of investors’ divergence of opinions is high, the amount in IPOs is large, or market conditions are hot, issuers will tend to use auctions. Our examination of issuers’ choice of IPO methods on the Taiwan’s IPOs shows that issuers condition the choice of IPO methods not only on prevailing market conditions, but also on firm/IPO characteristics. The results are consistent with our model. Finally, Taiwanese auction does not lead to less under-pricing than the fixed-price offering, but an issuer choosing a selling method with a higher degree of unfitting for firm/IPO characteristics and to market conditions will suffer more under-pricing.

本研究旨在探討家族企業及非家族企業兩種不同的公司治理型態，其董事會各組成區塊與企業進行實質盈餘管理之間的關聯性。實質盈餘管理係以異常營運活動現金流量、異常生產成本及異常裁決性費用為衡量指標，並以2004年至2011年間我國初次上市櫃(IPO)的電子產業為樣本範圍。 實證結果發現，在家族企業中：(1)最終控制者控制席次過半及經理人董事席次比率愈高，愈可顯著抑制企業進行實質盈餘管理。(2)外部董事席次比率愈高，對企業進行實質盈餘管理有反向助長之傾向。(3)獨立董事席次愈多，愈能顯著監督企業進行實質盈餘管理，唯在企業以裁決性支出方式操弄盈餘方面較無監督能力。在非家族企業中：(1)最終控制者控制席次過半及外部董事席次比率的增加，對抑制企業從事實質盈餘管理無顯著效果。(2)獨立董事席次的增加可顯著抑制企業操弄盈餘。(3)經理人董事席次比率愈高，愈顯著助長企業進行實質盈餘管理。 / This thesis aims to discuss the relationship between board composition and real earnings management (hereafter, REM) under family business and non-family business. This study uses abnormal cash flow from operations, abnormal production costs, and abnormal discretionary expenses as a measure of real earnings management. Data is collected from electronics industry in Taiwan which applied for Initial Public Offerings (IPO) from 2004 to 2011. The empirical results show that in family business: (1) If the ratio of board seat-control of ultimate controller is over 50 percents, or the ratio of board seats of manager is higher, it is helpful to restrain firms from manipulating earnings by REM.(2) Once the ratio of board seats of outside directors is higher, it is prone to promote firms to do REM.(3) Once the board seats of independent directors are more, it is significant to reduce the degree of REM. However, they seem to have no abilities to restrain firms from manipulating earnings by varying discretionary expenses. In non-family business: (1) The board seat-control of ultimate controller over 50 has nothing to do with decreasing the degree of REM. Also,the increase of the ratio of board seats of outside directors is not significantly to suppress the degree of REM. (2)The increase of board seats of independent directors is effectively to reduce the extent of REM. (3) If the ratio of board seats of manager is higher, it will push firms to manipulate earnings by REM.

For start-up businesses, the source of outside capital can be retrieved from the venture capital industry. The venture capital industry has grown substantially over the past 50 years, reaching its pinnacle during the internet bubble in the 1990s and serves as an important contributor to the economy. After some time, and optimally when the start-up has matured into a successful business, venture capitalists want to receive money in return for their investments. Most commonly, the exiting of venture capital investments is retrieved through an IPO. An IPO refers to the transition from a private corporation to a public corporation and occurs when a private corporation offers its shares to the public for the first time. The existing literature of IPOs is commonly associated with the depiction of abnormal returns. More precisely, the offer price is often underpriced in comparison to the closing price on the first day of trading. In addition, the returns 1 to 5 years after going public are often subject to subsequent declines (Miller & Riley, 1987; Ritter, 1998). A part of the underperformance of IPOs is anchored in the type of capital structure, venture capital. Thus, this study examines the relationship between venture capital backed IPOs and IPO performance. Furthermore, the relationship between the degree of venture capital, the amount of capital held by the venture capital firm in the IPO, and IPO performance are examined in order to discover eventual correlations. Concerning the performed analysis, the study concludes that there is no clear positive relationship between venture capital backing and IPO performance in the short run. However, one could interpret that being a VC-backed IPO can be prosperous for long-term performance since VC has a positive impact on ROA. Regarding the degree of venture capital, it had a negative impact on the ROA, i.e., the level of degree of venture capital does not have a positive impact on the IPO performance.

Titel: Cooking the Books: En analys av resultatmanipulering vid svenska börsintroduktioner. Nivå: Examensarbete på grundnivå (kandidatexamen) i ämnet företagsekonomi. Författare: Rasmus Bergman Enarsson & Isak Larsson. Handledare: Jan Svanberg. Datum: 2024-05-28. Syfte: Syftet med denna studie är att analysera om resultatmanipulering förekommer i samband med börsnoteringar på den svenska aktiemarknaden. Metod: Denna studie har tillämpat en kvantitativ strategi för att analysera förekomsten av resultatmanipulering vid börsnoteringar. Finansiella data samlades in från Retriever för företag noterade på First North, NGM Equity, Spotlight och Nasdaq STHLM under perioden 2018–2022. Analysen gjordes i IBM SPSS Statistics. Resultat och slutsats: Vår studie finner signifikanta bevis för att företag manipulerar sina resultat uppåt under perioden före, under och efter en börsnotering. Examensarbetets bidrag: Det finns lite till ingen forskning om sambandet mellan börsnoteringar och förekomsten av resultatmanipulation på den svenska aktiemarknaden. Denna studie bidrar med värdefulla insikter för marknadens olika intressenter, i syfte av att minska de risker och felaktiga värderingar som kan uppstå vid börsnoteringar. Förslag till fortsatt forskning: Framtida forskning kan utöka tidsramen och inkludera fler variabler. Marknadens reaktioner på resultatmanipulation kan dessutom utforskas. Den kassaflödesbaserade resultatmanipulationen kan också beaktas. Till sist vore det även intressant att tillämpa Dechows et al. (2012) metodik i andra kontexter, som under covid-19-pandemin. Nyckelord: Redovisning; Redovisningsval; Periodiseringar; Periodiseringsbaserad resultatmanipulering; Resultatmanipulering; Börsintroduktioner. / Title: Cooking the Books: An analysis of earnings management among Swedish IPOs.  Level: Degree project at first level (bachelor’s degree) in the subject Business Administration.  Authors: Rasmus Bergman Enarsson & Isak Larsson.  Supervisor: Jan Svanberg.  Date: 2024-05-28.  Aim: The purpose of this study is to analyze whether earnings management occurs in context with IPOs on the Swedish stock market.  Method: This study has applied a quantitative strategy to investigate earnings management in the context of Swedish IPOs. Financial data from 2018–2022 were collected from the database Retriever for companies listed on First North, NGM Equity, Spotlight, and Nasdaq STHLM. The analysis was conducted with IBM SPSS Statistics.  Results and conclusions: This study provides evidence that firms inflate their earnings during the period before, during, and after an IPO.  Contribution of the thesis: There is little to no research on the relationship between IPOs and the practice of earnings management in the Swedish stock market. This study provides valuable insights for the various market stakeholders, aiming to reduce the risks and inaccurate valuations that can arise during IPOs.  Suggestions for future research: Future research can extend the analysis timeframe and include more variables. Additionally, market reactions to earnings management can be explored. Real activities management can also be considered. Finally, it would be interesting to apply the methodology of Dechow et al. (2012) in other contexts, such as during the COVID-19 pandemic.  Key words: Accounting; Accounting choices; Accruals; Accrual-based earnings management; Earnings management; Initial public offerings.

本研究主要探討生技產業公開說明書之風險因子揭露對首次公開發行公司5年內的獲利能力做研究，想得知風險因子的揭露是否會影響公司獲利時間的長短。本研究以美國生技產業首次公開發行公司為研究對象，樣本期間為1997年至2012年。 許多文獻指出越來越多公司在尚未獲利前即先行上市，但公司未來的前景及獲利能力卻充滿高度的不確定性，而透過資訊的揭露可使該不確定性下降，因透過揭露，投資者可以了解公司營運狀況及表現，對公司價值能做較正確之判斷， 此時願意提供資金給公司營運，充足的資金使公司未來獲利機會上升。 本研究參考過去文獻，建立資訊揭露的四級指標加上風險因子所揭露的項目多寡，系統性地衡量生技公司公開說明書之風險因子，並以存活分析檢測假說。實證結果顯示：風險因子的內容描述越著重在某些特定資訊，例如：顧客資訊、重要員工資訊、量化資訊的表達、公司未來不確定性、財務需求時，公司未來獲利能力機會大增，而當更進一步的探究時，又發現對顧客資訊和量化資訊的表達越具體，越詳細時，也會使公司未來獲利機會上升。 / This study investigates whether disclosure of risk factors in the prospectus will influence the probability of the biotech firms to attain profitability. Data is collected for biotech companies of U.S IPOs issued from1997 to2012 as the research sample. Many extant empirical evidences indicate that the proportion of firms going public prior to achieving profitability has been increasing over time. There is considerable uncertainty regarding the long-term economic viability of these firms at the time of going public. Disclosures in the prospector may mitigate the effects of ex-ante uncertainty about firm’s value, and disclosures are potentially important means for management to communicate firm performance and governance to outside investors. Therefore, firms can raise more money by disclosing more information in IPO prospectors, because more information reperesent lower uncertainty between investors and firms.This study uses risk factors in the prospectus as concern issue and expects that the quantity of risk factors and the content or description of risk factors will influence the uncertainty and would mitigate investors’ concern. Referring to past literature, this study builds four-class index for disclosure score and uses two classifications of risk factors to systematically measure risk factors in the prospectus. The empirical results show that a biotech IPO with more information or some specific information of risk factors, like disclosures of main customers and key employees, will experience good performance after IPO. In addition, more detail descriptions in quantitative risk factors and customers’ information contributed to better performance in the future. In conclusion, disclosure of risk factors in the prospectus are related to firms’ probability of profitability after IPO as expected.

Esta tesis consiste de tres ensayos. En el primero, documentamos la correlación imaginaria entre las decisiones de compensación de los ejecutivos (CEO) al demostrar que el hándicap de los ejecutivos que juegan al golf no está correlacionado con su desempeño en la empresa mientras que sí lo está con su compensación. Los golfistas ganan más que los que no juegan al golf, y las pagas se incrementan con la habilidad en este juego. En el segundo ensayo explicamos la reciente espiral de las compensaciones de los ejecutivos basados en el sesgo de atribución fundamental. El análisis de las series temporales agregadas y de datos de sección cruzada correspondiente a la burbuja del mercado accionario en los noventa sugiere que los accionistas exageran al atribuir las subidas y bajadas de los precios de las acciones corporativas a las aptitudes de liderazgo del ejecutivo mientras que subestiman el rol de las fluctuaciones del mercado accionario que se encuentran fuera del control de estos. En el tercer ensayo demostramos que un gran número de Ofertas Públicas Iniciales predice sistemáticamente, tanto dentro como fuera de la muestra, el subsiguiente bajo rendimientos agregado y ponderado, y la diferencia de rendimientos entre las pequeñas y grandes firmas. / This thesis consists of three essays. In the first, we document illusory correlation in CEO compensation decisions by demonstrating that golf handicaps of CEOs are uncorrelated with corporate performance, but related to CEO compensation. Golfers earn more than non-golfers and pay increases with golfing ability. In the second essay we propose a fundamental attribution bias-based explanation of the recent explosive growth in CEO pay. Analysis of aggregate time series data and cross sectional data from the late 1990s stock market bubble period suggests that shareholders overattribute prominent increases and decreases in the prices of corporate stocks to the leadership and skill of the CEOs and underestimate the role of stock market fluctuations that are beyond CEO control. In the third essay we show that increases in the number of Initial Public Offerings reliably predicts in-sample and out-of-sample decreases in subsequent equally weighted aggregate stock returns and the return differential between small and big firms.

Cette thèse a pour objet d’analyser l’impact du suivi par les analystes financiers lors de l’introduction en bourse sur la qualité du marché secondaire et sur la future vie boursière de l’entreprise. Dans cet objectif, trois études empiriques sont menées sur le marché français. La première apporte une nouvelle explication à la relation positive qui existe entre la sous-évaluation initiale et la liquidité sur le marché secondaire. Elle montre que cette relation positive se forme par le biais de la couverture des analystes financiers. En se basant sur la méthode de l’analyse de survie, notre deuxième étude révèle que le suivi par les analystes financiers a un impact positif sur la durée de vie boursière de l’entreprise. La troisième étude démontre que la couverture peut également influencer l’occurrence et la rapidité d’occurrence d’une émission secondaire. Il apparaît que les firmes les plus couvertes au moment de l’introduction sont celles qui retournent le plus rapidement au marché pour effectuer une émission secondaire garantie. Ces travaux soulignent l’importance du suivi par les analystes financiers des introductions en bourse. / This thesis aims to analyze the impact of IPO analyst coverage on the quality of the secondary market and on the future market life of the firm. For this purpose, three empirical studies are conducted on the French market. The first one provides a new explanation for the positive relation between initial underpricing and post-listing liquidity. We find that this positive relation is formed through analyst coverage. Our second study shows that analyst coverage has a significant positive impact on IPOs survival. The third study explores the linkage between analyst coverage and subsequent seasoned equity offerings. Our results indicate that analyst coverage is a significant predictor of subsequent SEO and that more covered firms are those that return more quickly for an insured offering. Our findings enlighten the importance of analyst coverage around IPOs.