Change search
CiteExportLink to record
Permanent link

Direct link
Cite
Citation style
  • apa
  • ieee
  • modern-language-association-8th-edition
  • vancouver
  • Other style
More styles
Language
  • de-DE
  • en-GB
  • en-US
  • fi-FI
  • nn-NO
  • nn-NB
  • sv-SE
  • Other locale
More languages
Output format
  • html
  • text
  • asciidoc
  • rtf
Water or Oil in the Fire?: Impact of Diversification on the Underpricing Phenomenon in IPOs & SEOs
Södertörn University, School of Social Sciences.
Södertörn University, School of Social Sciences.
2014 (English)Independent thesis Basic level (degree of Bachelor), 10 credits / 15 HE creditsStudent thesis
Abstract [en]

Background: Acquiring capital is one of the most fundamental necessities for an enterprise. The discussed ways of doing so by this thesis, are the so called Initial Public Offerings (IPOs) and Seasoned Equity Offerings (SEOs). Although engaging in an IPO is a desire for most of the newly started firms, the process of introduction to the global market and the results of it are far from smooth and problem free. One of the main unknowns that issuers face is underpricing. Theory suggests that mechanisms for undervaluing the new stock have been devised, so that certain parties can benefit by allocation on the market.

Purpose: The purpose of the study is to investigate any possible relationship between the level of industrial diversification and the level of short-run underpricing of the two most common asset issuances - Initial Public Offerings and Seasoned Equity Offerings. Further on, it is of use to compare the severity of diversification’s effect on underpricing of IPOs and SEOs.

Method: This research is basically solely quantitative. A database for levels of diversification and industrial underpricing for the companies that conducted IPOs and SEOs in the given time period was compiled. Statistical calculations were conducted to examine possible relationships between the variables.

Conclusion: The paper could not see any relevant relationship between the degree of industrial diversification and the amount of “money left on the table”. The conclusion can be drawn that investors apparently do not consider the degree of industrial diversification when assessing the value of a company.

Place, publisher, year, edition, pages
2014. , 47 p.
Keyword [en]
IPO, SEO, Industrial Diversification, Underpricing
National Category
Business Administration
Identifiers
URN: urn:nbn:se:sh:diva-24063OAI: oai:DiVA.org:sh-24063DiVA: diva2:724273
Subject / course
Business Studies
Uppsok
Social and Behavioural Science, Law
Supervisors
Available from: 2014-06-13 Created: 2014-06-12 Last updated: 2014-06-13Bibliographically approved

Open Access in DiVA

Water or Oil in the Fire? –(1153 kB)160 downloads
File information
File name FULLTEXT01.pdfFile size 1153 kBChecksum SHA-512
c520b2f569e1db859c6ff002829afac4cc82c7481db840accb429a91bb22da861a409e80861bd0b328de36da9ab0436c21b0a7125f65b4d738474d3132fdcd88
Type fulltextMimetype application/pdf
Appendix(630 kB)59 downloads
File information
File name FULLTEXT02.pdfFile size 630 kBChecksum SHA-512
1ddd1f690f3b1a8662242860ec15507ef950be60f5781c0ef28cda8c67177d6b1ae3017dd1efcb783b3a429c6139b40bdf60c76d55746d6b3c6fd3f8deba3265
Type fulltextMimetype application/pdf

By organisation
School of Social Sciences
Business Administration

Search outside of DiVA

GoogleGoogle Scholar
Total: 219 downloads
The number of downloads is the sum of all downloads of full texts. It may include eg previous versions that are now no longer available

urn-nbn

Altmetric score

urn-nbn
Total: 206 hits
CiteExportLink to record
Permanent link

Direct link
Cite
Citation style
  • apa
  • ieee
  • modern-language-association-8th-edition
  • vancouver
  • Other style
More styles
Language
  • de-DE
  • en-GB
  • en-US
  • fi-FI
  • nn-NO
  • nn-NB
  • sv-SE
  • Other locale
More languages
Output format
  • html
  • text
  • asciidoc
  • rtf