The Effects of IPOs and Industry Classification on Operating performance
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School of Business |
Bachelor's thesis
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Date
2022
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Degree programme
Rahoitus
Language
en
Pages
15 + 1
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Abstract
In this thesis I study the effects of IPO events on the operating performance of the listing company and see whether this effect varies between industries. This is done by using company fundamentals data from 1990 to 2022 and calculating performance metrics such as ROA, ROE and Capital Expenses growth. I then do an OLS regression on these performance metrics by the three years prior and the three years after the company’s IPO event to see if a consistent significant effect can be shown. I find that while there are some metrics with significant IPO effects, the effect is not consistent with all performance metrics. Thus it cannot be conclusively stated that the effect of conducting an IPO would be significant in itself. The industry effect observed was significant in the Retail sector. For future research, it would be interesting to dive deeper on this industry effect.Description
Thesis advisor
Shin, SeanKeywords
Initial Public Offering, IPO, Operating performance, Industry