When a firm decides to go public, two abnormalities often occur. The first is called underpricing and can be defined as a capital loss made by the company the first day of trade due to that the offer price is lower than the closing price after the first day of trade. The increase in stock value is equal to capital the issuing firm could have gained initially; this capital loss is referred to as the “money left on the table”. The second abnormality, underperformance, is a result from underpricing. It means that the stocks that were underpriced the first day also tend to underperform 3-5 years after the initial public offering (IPO) compared to competitors within the same industry. These two abnormalities together constitutes a problem for the firm because they loose money. However it also enables investors to make a quick profit. There are many studies covering this area, however mostly made by Americans, therefore the aim of this report is to investigate whether the two abnormalities exist on the Swedish market. In order to fulfill the purpose, companies that were listed 1998-2007 were investigated. Their stock performance is analyzed both on the day of IPO, where we found that 51% of the companies listed were underpriced, with an average of 23%. Further, the average “money left on the table” per company was 3.9 MSEK. The stock prices have also been analyzed on a one- as well as a five year period after the IPO in order to analyze the long-run performance and later compare it to the rest of the industry as well as industry index. We found that most of the companies that where underpriced also tend to follow underperformance. However, how long they underperform depends in which industry they operate. The IT industry, for example had a negative performance after 5 years whereas the Industrials industry has the turning-point from negative performance before 5 years.

<p>When a firm decides to go public, two abnormalities often occur. The first is called underpricing and can be defined as a capital loss made by the company the first day of trade due to that the offer price is lower than the closing price after the first day of trade. The increase in stock value is equal to capital the issuing firm could have gained initially; this capital loss is referred to as the “money left on the table”. The second abnormality, underperformance, is a result from underpricing. It means that the stocks that were underpriced the first day also tend to underperform 3-5 years after the initial public offering (IPO) compared to competitors within the same industry.</p><p>These two abnormalities together constitutes a problem for the firm because they loose money. However it also enables investors to make a quick profit. There are many studies covering this area, however mostly made by Americans, therefore the aim of this report is to investigate whether the two abnormalities exist on the Swedish market.</p><p>In order to fulfill the purpose, companies that were listed 1998-2007 were investigated. Their stock performance is analyzed both on the day of IPO, where we found that 51% of the companies listed were underpriced, with an average of 23%. Further, the average “money left on the table” per company was 3.9 MSEK. The stock prices have also been analyzed on a one- as well as a five year period after the IPO in order to analyze the long-run performance and later compare it to the rest of the industry as well as industry index. We found that most of the companies that where underpriced also tend to follow underperformance. However, how long they underperform depends in which industry they operate. The IT industry, for example had a negative performance after 5 years whereas the Industrials industry has the turning-point from negative performance before 5 years.</p>

An alternative way to invest on the stock market is to invest in IPO’s. An IPO (InitialPublic Offering) is the first time a company goes public on a stock market, giving outshares to private investors and financial institutions. However, there might be someuncertainties about the share price as it never has been traded on the stock exchangebefore and it could therefore be difficult to determine a reasonable value for the shareprice. Consequently, if the offering price for the investor is significantly lower thanthe “correct valued” price it will generate positive initial return during the first tradingday and this phenomenon is labelled as underpricing, generating more “money on thetable”. Still, previous researches display an underperformance among IPO’s during alonger period after the introduction compared to already established companies withinthe same sector, arguing that investors should sell their shares early after the firsttrading day.The objective of this study is therefore to determine if underpricing exists for IPO’son the Swedish stock exchange and if there are any differentiations amongst sectors,and also to investigate two different Buy-and-Hold strategies. A final objective for thestudy is to determine if the level of underpricing is affected by some explanatoryvariables.With a quantitative study and a longitudinal approach, the results confirm the effect ofunderpricing for IPO’s on the Swedish stock exchange, generating an averageunderpricing of 5.56%. Additionally, this study cannot display any different medianunderpricing between industry sectors. However, it contradicts with theunderperformance phenomenon, indicating an overperformance for longer Buy-and-Hold strategies. Lastly, a regression of explanatory variables trying to explain thelevel of underpricing demonstrates no statistically significant results.

In this thesis we analyze the financial performance of Football clubs following an initial public offering (IPO). We conduct several analyses using time series stock data with a focus on finding evidence of long-run underperformance and IPO over/underpricing. To this end, we estimate cumulative abnormal returns (CAR) and Jensen’s Alpha. We also analyze coefficients such as beta to describe the volatility and the link football clubs’ stocks have to the general market. We look at historical events that may have affected the movement of stock prices and confirm this by benchmarking an index (STOXX index) compiled of a number of European football teams. Our results show that football clubs do in fact follow the clear pattern of other entities and sectors and previous research with regard to underperformance in the long run. We find that football clubs’ stocks are less volatile than the general market and have a low beta. With regards to over/underpricing, we only obtain data for a few football clubs. We find small signs of underpricing but are not able to confirm that this is statistical significant due to the size of our sample.

The purpose of this research is to study the effect of market conditions on the performance of IPOs which is relevant information for investors and companies alike, involved with IPOs. The long-term underperformance of IPOs has been previously discussed by Loughran &amp; Ritter (1995) which has later been named as the “New Issuance Puzzle” of IPOs. This underperformance, however, has later been contradicted by research from Carter et al. (2011) who did not find long-term underperformance of IPOs. By studying the previous research of Helwege &amp; Liang (2004), who examined IPO issuances under different hot and cold IPO periods, we found a research gap of what effect the market conditions have on the IPO issuance.   By analysing the performance under different time periods, we compare the results to an index benchmark with matching time periods of the IPO issuing companies under our full sample period. We can then analyse the performance of the IPOs compared to their respective benchmark. By adding an analysis of hot/cold and bull/bear market conditions under which the IPOs were conducted, we will observe the effect of IPO performance under different market conditions.   Our positivistic and ontological view guided our article and research process. We relied on a deductive approach in order to test our anticipated outcomes and hypotheses. Articles yielding substantive theories, based on the explanation of middle-range theories serve as the benchmark of our theoretical framework.   The research came to a conclusion where we did not observe underperformance of the IPOs in the long-term, which contradicts the “New Issuance Puzzle” of Loughran &amp; Ritter (1995). We could observe underperformance (overperformance) of IPOs under hot (cold) period market conditions when we defined the hot and cold market periods in accordance with the number of IPO issuance during each year. In accordance to initial first month IPO returns, we observe overperformance (underperformance) of hot (cold) period IPOs. We also included bull and bear market conditions into our research, where we could find patterns that the number of issuance had the same distribution as the bull and bear market conditions currently consisting on the market. The index of OMXS30 had the same price movement as the number of issuance each year. Therefore the number of issuance each year could hypothetically be used as an indicator of the future market performance of the OMX Stockholm. We did not find statistical significance of abnormal returns on the IPO market under different market conditions

Performance of stock markets is determined by three classes of variables: macroeconomic indicators, industry & firm heterogeneity and third country effects. When assessing performance of a stock market index, impact of industry & firm heterogeneity is marginal as it is already embedded in the index through its constituent companies. This paper will therefore focus on the other two. Chinese stock market was selected as an application as their performance compared to other domestic indicators (mainly GDP growth) is considered inferior by many researchers. Using econometric framework for panel data and a Bayesian extension, the paper estimates multiple models of Chinese stock market performance examining individual determinants of it. Subsequently, it predicts development of theoretical prices of two main Chinese stock indices on two time samples until 2013. The paper then demonstrates underperformance of Chinese stock market by comparing the modeled prices to actual prices realized on the market. JEL Classification C23, C51, C53, G15, G17 Keywords underperformance, panel data, fixed effects model, Bayesian Model Averaging Author's e-mail roman_kovac@ymail.com Supervisor's e-mail karel.bata@seznam.cz

This study investigated the impact of the levels of liquidity of Initial Public Offering (IPO) stocks on the long-run performance of IPOs over a five year period. In addition the study sought to investigate if the levels of liquidity of IPO stock were significantly higher than non-IPO stock. The methodology used was the calendar time portfolio approach based on the Fama-French regression equation. The study found that over a five year period IPOs did not underperform or over-perform the market. In addition the study found that the liquidity levels of IPOs were not significantly higher than non-IPOs. While the lower liquidity levels help explain the fact that the IPOs did not underperform the market, they do not indicate the existence of a liquidity risk premium on the Johannesburg Stock Exchange (JSE). / Dissertation (MBA)--University of Pretoria, 2011. / Gordon Institute of Business Science (GIBS) / unrestricted

This study attempted to understand the school principal’s perception about the characteristics, attitudes and behaviors of teachers who may be operating on the fringes of proficient performance. In addition, this study attempted to understand if the demographics of the school principal and the school could play a role in the type of characteristics that principals valued. Furthermore, this research also focused on the strategies principals used to address underperformance and barriers that may have faced as they attempted to address instances of teacher underperformance inside the schools they led. This study included a large sample of 410 school principals in the state of Pennsylvania from over 200 school districts. Findings indicate that school principals valued a lack of classroom management, and poor teacher pedagogical skills and subject matter knowledge as strong indicators of underperformance. Principals also identified the use of continued formal documentation and formal improvement plans as strategies to address underperformance. In addition, principals often identified that a lack of time to work with underperforming teachers was a significant barrier as well as protections from teacher unions and a perceived lack of support from the school superintendent and school board. In total, this research has implications for both school district leadership and school leaders. The voice of the principal is an important voice to be heard particularly when it relates to teacher quality and addressing teacher underperformance. / Educational Leadership

Background: The post-IPO anomalous behaviour in the short and long-run are among the well-recognised anomalies in corporate finance, and exist on all equity markets. The researchers are not unanimous what causes these phenomena’s, and previous research has primarily focused on the US and European markets. Purpose: The study aims to investigate the market performance of Swedish IPO's in the short- and long-run in-between 2007-2017 for different sectors. Method: The market adjusted initial return method was used to calculate the short-run initial return. The Even-time approach with the Buy-and-hold methodology was used to calculate the long-run abnormal returns. A regression analysis was adopted to investigate the relationship between some existing theories for explaining underpricing. Conclusion: Overall the sample set for the study were on average underpriced with 9,25 %, furthermore, no evidence was found that Swedish IPO’s underperformed in a three-year period compared to the market. Of the theories tested, the signalling hypothesis was significant and can be one determinant for underpricing of Swedish IPO’s.

Magister Artium - MA / After 15 years in the democratic dispensation of South Africa, having access, equity and redress in educational provision have not yet been achieved. Instead, the reality speaks of underperformance (schools with a less than 60% national matric pass rate) as well as dysfunctional schools (with a less than 20% pass rate) continue in the Western Cape amidst a 7% increase in the Matric pass rate nationally.The intention of the Western Cape Education Department (hereafter referred to as the WCED) to reduce the number of dysfunctional schools from 85 to 55 resulted in a decrease to 78 schools. The overall increase of the 2010 matric pass rate in the Western Cape from 75.7% to 76.8% does not reflect an increase of quality educational provision to children from less advantaged urban areas. The aim of this study is to determine how and why some formerly identified dysfunctional and underperforming schools in less advantaged urban areas improved their performance while others did not. Also looking at, the role played by the School Governing Body in improving performance as a stakeholder, especially the role of the parental entity. It is clear that there are particular challenges facing parents from disadvantaged communities that directly influence their involvement and contribution to the improvement of performance in dysfunctional and underperforming schools. This research project focuses entirely on education but it is done within the field of development studies, trying to address certain developmental issues that impact educational provision and performance The theory of Structuration is used in the theoretical framework to understand the relationship between the agent (learners, parents, educators) and the structure (education system, society). It is useful to understand and address the challenges that prevent/delay improvement in the performance and function of schools in certain less advantaged urban communities. The Humanistic paradigm is used as a theory to emphasise the importance of a grassroots/ bottom up approach to development and to bring better understanding of parental involvement in educational provision. The mixed method approach (using both qualitative and quantitative research methods) that is widely acceptable in the field of educational research and in the development milieu is applied to address the question at hand. The use of a literature study, semi-structured interviews with focus groups and questionnaires to participating schools provide useful data for the research. The findings from this research will benefit the participating schools, the WCED and the education system.