University of Twente Student Theses
An analysis of the ownership structure in regards to the phenomenon underpricing for German IPOs
Iding, Paul (2016) An analysis of the ownership structure in regards to the phenomenon underpricing for German IPOs.
|
PDF
1MB |
| Abstract: | This quantitative paper investigates to what extend the phenomenon underpricing effects outside blockholdings of German IPOs in a timeframe from 2005 until 2015. Previous literature gave different explanations why firms underprice their shares in regards to the ownership structure. While some argue that underpricing and the associated oversubscription of shares leads to an allocation to small investors and thereby reduces outside blockholdings, other argue that having outside blockholders is desired. Data that covers 82 firms listed on the Frankfurt Stock Exchange/ Xetra is used to examine the relationship between underpricing and outside blockholding at the end of the year in which the IPO took place. The results however do not support the expectations that underpricing affects the fraction of outside blockholdings. Factors such as pre-IPO inside blockholding seem to be better predictors of outside blockholding, especially for a country like Germany in which a high degree of inside ownership is existent whereas these shareholders tend to retain control through the holding of large blocks post-IPO. |
| Item Type: | Essay (Bachelor) |
| Faculty: | BMS: Behavioural, Management and Social Sciences |
| Subject: | 83 economics, 85 business administration, organizational science |
| Programme: | International Business Administration BSc (50952) |
| Link to this item: | https://purl.utwente.nl/essays/70197 |
| Export this item as: | BibTeX EndNote HTML Citation Reference Manager |
Show download statistics for this publication
Show download statistics for this publicationRepository Staff Only: item control page