<p>This dissertation aims to explore how an investment appraisal differs depending on if it is conducted by a municipal or a private real estate company. Municipal and private real estate companies are not performing on totally equal terms in the property market. A municipal company in Sweden has a public service mission. The consequence due to that mission is that they have limited yield potential but on the other hand the right to certain subsidies. They are also limited by the law of public purchasing (in Swedish: Lag om offentlig upphandling) in the investment process. A private real estate company comprehends under the Companies Act (in Swedish: aktiebolagslagen) which means that they are operated in a rent seeking purposes and because of the user cost method (in Swedish: bruksvärdesprincipen) they must take the rent into consideration for an equal apartment which is owned and operated by a municipal real estate company. This we believe will have implications in how they go on in an investment appraisal.</p><p>In an investment appraisal it is common to have a particular strategy or approach, also to use some sort of calculation to calculate the investments’ profitability and to set a return on the investment. An investment also means some kind of risk, especially in the real estate business as it often deals with large amounts. </p><p>We have in our dissertation done six case studies where we examined how the factors, which the theory says affects, affected respective respondent’s investment appraisal. From this we are able to explain how the investment appraisal differs between the two ownership forms.</p><p>We have, after empirical analysis, found that the investment appraisal differ depending on the ownership. The factors that proving this is strategy, risk, regulation and the cost of capital. The strategy is more adapted for each investment among the private real estate companies while the municipal real estate companies tend to implement the investment appraisal in a similar way each time. Risk consideration has been shown to be higher among the private real estate companies as they take the risk in consideration in several aspects and calculate a specific risk for each investment. Legislation affect the investment appraisal by the ownership form which determines what law will be applied. The cost of capital influence because private real estate companies generally have a higher rate.</p>

This dissertation aims to explore how an investment appraisal differs depending on if it is conducted by a municipal or a private real estate company. Municipal and private real estate companies are not performing on totally equal terms in the property market. A municipal company in Sweden has a public service mission. The consequence due to that mission is that they have limited yield potential but on the other hand the right to certain subsidies. They are also limited by the law of public purchasing (in Swedish: Lag om offentlig upphandling) in the investment process. A private real estate company comprehends under the Companies Act (in Swedish: aktiebolagslagen) which means that they are operated in a rent seeking purposes and because of the user cost method (in Swedish: bruksvärdesprincipen) they must take the rent into consideration for an equal apartment which is owned and operated by a municipal real estate company. This we believe will have implications in how they go on in an investment appraisal. In an investment appraisal it is common to have a particular strategy or approach, also to use some sort of calculation to calculate the investments’ profitability and to set a return on the investment. An investment also means some kind of risk, especially in the real estate business as it often deals with large amounts. We have in our dissertation done six case studies where we examined how the factors, which the theory says affects, affected respective respondent’s investment appraisal. From this we are able to explain how the investment appraisal differs between the two ownership forms. We have, after empirical analysis, found that the investment appraisal differ depending on the ownership. The factors that proving this is strategy, risk, regulation and the cost of capital. The strategy is more adapted for each investment among the private real estate companies while the municipal real estate companies tend to implement the investment appraisal in a similar way each time. Risk consideration has been shown to be higher among the private real estate companies as they take the risk in consideration in several aspects and calculate a specific risk for each investment. Legislation affect the investment appraisal by the ownership form which determines what law will be applied. The cost of capital influence because private real estate companies generally have a higher rate.

Bakgrund: Underprissättning vid börsintroduktioner är ett väldokumenterat fenomen med flera teoretiska infallsvinklar, men kvarstår fortfarande som ett utav pusslen inom finansiell ekonomi. Underprissättningen, som avser en positiv avkastning efter första handelsdagens slut, skiljer sig i nivå mellan länder och över olika tidsperioder. Formella och informella institutioner är viktiga dimensioner för att förstå företagens och investerarnas strategier, vilket gör att den institutionella miljön även kan förväntas förklara skillnader i underprissättningsnivån. Syfte: Studiens syfte är att undersöka om och hur formella och informella institutioner kan förklara variationen i underprissättningsnivån mellan länder. Metod: Studien följer ett kvantitativt förhållningssätt där 16 hypoteser deduceras. Dessa hypoteser består av olika formella och informella institutionella faktorer som förväntas påverka underprissättningsnivån. Det empiriska materialet består av 6993 börsintroduktioner för perioden mellan 2006 och 2014 och utgör data från 25 länder med olika institutionella karaktärsdrag. Korrelationer undersöks genom en korrelationsmatris medan sambanden analyseras med hjälp av multipla regressioner. Resultat: Resultaten visar att den institutionella miljön har en signifikant påverkan på underprissättningsnivån. En högre kvalité på de formella institutionerna minskar underprissättningsgraden, främst som en följd av att problemen med informationsasymmetrier reduceras. Graden av underprissättning påverkas också av skillnader i informella institutioner där olika kulturella miljöer och normer framhäver skilda beteenden hos börsintroduktionens inblandade parter. / Background: IPO underpricing is a well-documented phenomenon with several theoretical approaches, but it is still one of the puzzles within financial economics. Underpricing, which refers to a positive return after the first day of trade, differ in level between countries and over time. Formal and informal institutions are important dimensions to understand the strategies used within businesses and by investors, which allows the institutional environment to also explain the variations in the level of underpricing. Purpose: The purpose of this study is to examine if and how formal and informal institutions can explain the variation in level of underpricing between countries. Method: The study follows a quantitative research approach where 16 hypotheses are derived. These hypotheses consist of different formal and informal institutional factors which are expected to explain the differences in the level of underpricing. The empirical data consists of 6993 IPOs between the period of 2006 and 2014 and represents 25 countries with different institutional characteristics. The correlations between the variables are examined in a correlation matrix while the relationships are analyzed by the use of multiple regressions. Conclusions: The results show that the institutional environment has a significant impact on the level of underpricing. A higher quality in the formal institutions reduces the level of underpricing, mainly because of reduced problems with information asymmetry. The level of underpricing is also affected by differences in informal institutions, where different cultural environments and values emphasize different behaviors of the IPO involved parties.

Problembakgrund: Ska ett företags verksamhet drivas för att maximera aktieägarvärde eller tillgodose alla intressenters intressen är en fråga som varit fokus för mycket forskning. Många forskare har undersökt vad som påverkar valet av bolagsstyrningsprincip, där ägarstruktur och styrelsesammansättning har lyfts fram som betydande faktorer. Resultaten är dock motstridiga. Eftersom tidigare forskningar har genomförts i olika länder och under olika tidsperioder finns det en god anledning att undersöka om/hur institutionella förhållanden kan påverka sambandet mellan ägarstruktur/styrelsesammansättning och val av bolagsstyrningsprincip. De institutionella miljöer som avses undersökas är Sverige och Kina. Syfte: Syftet med denna studie är att förklara sambandet mellan ägarstruktur/styrelsesammansättning och val av bolagsstyrningsprincip samt hur detta samband påverkas av olika institutionella miljöer. Metod: En deduktiv forskningsansats har legat till grund för studien och teorier som använts och applicerats är aktieägarteori, intressentteori, agentteori, upper echelon teori och institutionell teori. Data för denna kvantitativa forskning hämtas huvudsakligen från Datastream, årsredovisningar från svenska och kinesiska börsnoterade företag gällande åren 2013-2015, företagens hemsidor samt ett sammansatt styrelsematerial. Resultat: När den svenska och kinesiska datan testades tillsammans har det inte påvisats något signifikant samband mellan ägarkoncentration, institutionell ägare som störst ägare, andelen oberoende styrelseledamöter, staten som störst ägare, andelen kvinnliga styrelseledamöter och val av bolagsstyrningsprincip. Institutionella förhållanden har inte heller haft någon signifikant påverkan på sambandet mellan ägarstruktur/styrelsesammansättning och val av bolagsstyrningsprincip. När data för respektive land testades separat har det inte påvisats något signifikant samband mellan studiens beroende och oberoende variabler, förutom att det på den kinesiska marknaden har observerats ett signifikant positivt samband mellan andelen oberoende styrelseledamöter och aktieägarorinterat värdeskapande samt mellan staten som största ägare och aktieägarorienterat värdeskapande gällande den svenska marknaden. / Background and problem: Should a company's business be run to maximize shareholder value or meet all stakeholders´ interests is a question that has been the focus of much research. Many researchers have investigated what influences the choice of corporate governance principle, where ownership structure and board composition have been highlighted as significant factors. However, the results are contradictory. Since previous researches have been conducted in different countries and during different periods of time, there is a good reason to investigate whether institutional conditions may affect the relationship between ownership structure / board composition and the choice of corporate governance principle. The institutional environments investigated are Sweden and China. Purpose: The purpose of the study is to explain the relationship between ownership structure / board composition and the choice of corporate governance principle and how this relationship is influenced by various institutional environments. Method: A deductive research approach has been the basis of this study and theories used and applied are shareholder theory, stakeholder theory, agent theory, upper echelon theory and institutional theory. Data for this quantitative research is mainly gathered from Datastream, annual reports from Swedish and Chinese listed companies for 2013- 2015, corporate websites and a composite board material. Results: When the Swedish and Chinese data were tested together, there has been no significant correlation between owner concentration, institutional owners as the largest owner, the proportion of independent directors, the state as the largest owner, the proportion of female board members and the choice of corporate governance principle. Institutional conditions have not had a significant effect on the relationship between ownership structure / board composition and the choice of corporate governance principle. When data for each country was tested separately, there has been no significant correlation between the study's dependent and independent variables except that in the Chinese market there has been a significant positive correlation between the percentage of independent directors and shareholder-oriented value creation and between the state as the largest owner and shareholder-oriented value creation concerning the Swedish market.