Political uncertainty and IPOs: Evidence from European countries

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School of Business | Bachelor's thesis
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Authors

Vehniäinen, Ville

Date

2019

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Mcode

Degree programme

Rahoitus

Language

en

Pages

21 + 4

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Abstract

In this paper I examine if the political uncertainty brought by a parliamentary election year has a negative effect on the number of IPOs in European countries. As my sample set, I use 17 different European countries with each country having at least 40 IPOs in 1991-2018. During those 28 years there has been 7052 IPOs and 127 parliamentary elections within those countries. I find that a parliamentary election year does not have a statistically significant effect on the IPO activities in Europe. This result holds even during election years with a high uncertainty about the winning party. In addition, I find that election years do not have a statistically significant effect on IPO decisions of high-technology firms.

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Thesis advisor

Shin, Sean

Keywords

IPOs, Political uncertainty, Uncertainty, Tobit model

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