Börsintroduktioner som kortsiktig investering

Title: Borsintroduktioner som kortsiktig investering - En studie om en kvantitativ, tidsbaserad investeringsstrategi vid borsintroduktioner Seminar date: 1 June 2018 Course: FEKH89 Bachelor’s Degree Project in Financial Management Undergraduate Level, Business Administration Undergraduate Level, 15 University Credits Points Authors: Erik Johnsson, Mans Lindner, Melissa Skog Advisor: Anamaria Cociorva Key words: IPO, BHAR, Short-term performance, Investment Strategy, Nordic countries Purpose: The purpose with this essay is to examine the possibility of statistically proving the optimal time to own a stock after its IPO. The study will be based on the theory that IPOs tend to underperform their respective index on a long-term basis. Methodolgy: The study has been performed using a quantitative research method. Theoretical perspective: Previous research within the chosen subject, regardless of the geographical area, has found a negative correlation between BHAR and time. On a short-term perspective, IPOs tend to outperform their respective benchmark while underperforming on a long-term basis. This study will focus on the relationship of BHAR and time to identify and examine where the transition from a positive to a negative trend takes place. Empirical foundation: Gathered data consists of 59 companies that performed an IPO within Nasdaq Stockholm, Nasdaq Copenhagen and Oslo Bors between 2010 and 2015. This has then been compared to their respective benchmark. All data has been collected from Bloomberg and Nasdaq. Conclusions: The study shows that companies tend to outperform their respective benchmark during the first 600 trading days following the IPO. The point where the positive trend of outperforming the benchmark transitions into underperforming is found to be during the 447th trading day. On the 447th day, BHAR is 38,23%. Statistical evidence and significance have been found supporting the above conclusions.