Browsing by Author "Ali, Ikhwan"

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    Initial Public Offerings in “Hot” and “Cold” Markets - A Study of the Swedish IPO market
    (2020-08-10) Ali, Ikhwan; Awad, Patrik; University of Gothenburg/Department of Economics; Göteborgs universitet/Institutionen för nationalekonomi med statistik; University of Gothenburg/Department of Business Administration; Göteborgs universitet/Företagsekonomiska institutionen
    This thesis aims to test if the IPO market differs in hot and cold market conditions in terms of industry clustering, firm characteristics, and long-run performance. The study is conducted on the Swedish IPO market ranging from 1992 to 2020 and 2017 in analyzing the long-run performance. The study compares different variables across the period depending on the market condition. The long-run performance is measured by taking the risk-adjusted returns over three years. The results from the study support that there are differences in some of the firm characteristics in different market conditions and a slight difference in industry clustering. Hot market firms tend to have a higher percentage of institutional owners and overallotment by underwriters. One of the industries that are analyzed differs in long-run performance. However, the study rejects any difference in risk-adjusted long-run performance depending on the market conditions. Regressing firm characteristics and market conditions on returns performance we find no significant difference between conditions or effects of firm characteristics.