Post-SEO Performance in the Recovery Phase of the Financial Crisis

This thesis focuses on seasoned equity offerings and aims to examine announcement effects and long-run performance of SEO firms on the Swedish stock exchanges, during the recovery phase of the global financial crisis. Also, an OLS regression is run in order to explain post-SEO performance using the independent variables book-to-market ratio, market capitalization and the firms’ number of SEOs during the time period. The study takes on a deductive approach measuring and analyzing SEO firms’ performance, meaning that hypotheses are deduced based on earlier research and theory. Earlier studies and theory generally suggest negative announcement effects, along with long-run underperformance of firms that issue seasoned equity. The sample consists of Swedish firms listed on NASDAQ OMX Stockholm and First North. More specifically, the sample includes a total of 123 observations measuring announcement effects and 81 observations measuring long-run performance. The results generated by the study show clear signs of negative announcement effects and long-run underperformance for Swedish SEO firms during the time period. However, long-run underperformance cannot be concluded for SEO firms listed on First North during the time period. Moreover, the independent variable for number of SEOs is negatively significant for firms listed on NASDAQ OMX Stockholm. The results suggest that signaling theories, which say that an SEO has a negative impact on firm value, are applicable on the Swedish stock markets. Furthermore, interpreting the results hint that the markets have not been efficient in terms of initial re-evaluation of stock prices after information of SEO announcements

Den teknologiska IPOn i kraschens efterdyningar

Tidigare forskningsresultat har indikerat att långsiktig underprestation i regel återfinns hos börsintroducerade bolag. Syftet med den här studien är att testa huruvida de tidigare forskningsresultaten också gäller för börsintroduktioner inom teknologibranschen under 2000-talet. Genom att studera börsintroducerade bolags aktiekursutveckling, fastställs prestationen då de jämförs med marknads- och branschspecifika index. Vidare tar studien också ansats i att förklara hur vissa valda variabler påverkar den treåriga avkastningen för studerade bolag. Studien antar en deduktiv ansats där långsiktig prestation beräknas för det empiriska materialet, som utgjorts av sekundärdata, och analyseras med hjälp av Buy-and-Hold-avkastning, kumulativ onormal avkastning samt multipel regression. Underliggande teorier för den här studien har framförallt hämtats från tidigare forskning kring långsiktig prestation för börsintroducerade bolag. Sammantagen empiri kring de 143 observerade börsintroduktionerna inom teknologibranschen är hämtat från Thomson Reuters Datastream. Studien visar att börsintroduktioner inom teknologibranschen under 2000-talet inte kan påvisa långsiktig underprestation. Vidare visar författarna att ålder har positivt samband medan volym har negativt samband med bolagens långsiktiga prestation.Earlier studies have shown that long-run under performance is occuring for Initial Public Offerings (IPOs). The purpose of this thesis is to test whether long-run under performance is appliable for IPOs within the technology sector during the 21st century. By studying movements in stock prices, the performance is determined when comparisons to indices are made. Further on, the three year buy-and-hold returns are explained by several chosen independent variables. The study takes a deductive approach in its way of calculating long-run performance from the empirical foundation, and then analyzes the results with buy-and-hold return, cumulative abnormal return and multiple regression. Underlying theories for this thesis have mainly perspectives consisted of earlier studies regarding long-run performance for IPOs. The main source of empirical material is Thomson Reuters Datastream. This thesis provides evidence that under performance is not appliable for technology IPOs during the period 2000-2011. The study shows that the independent variable age has positive relation and that independent variable volume has negative relation to IPOs long-run return

2019 ESC Guidelines on diabetes, pre-diabetes, and cardiovascular diseases developed in collaboration with the EASD.

Guideline