University of Twente Student Theses
The effect of R&D on IPO pricing
Voorhuis, M.H. (2024) The effect of R&D on IPO pricing.
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| Abstract: | This thesis investigates the impact of Research and Development (R&D) intensity on the pricing of Initial Public Offerings (IPOs) across various industries, challenging the traditional view that higher R&D intensity directly correlates with increased IPO pricing. The study employs a quantitative approach, analysing financial data from companies going public between 2016 and 2022, excluding years affected by COVID-19. The findings reveal a more complex relationship than previously assumed. Contrary to expectations, the research indicates either a negligible or even inverse relationship between R&D intensity and IPO pricing. This study also explores the role of patents, finding a potential positive impact, but without a statistically significant correlation with IPO pricing. Additionally, the research shows no significant interaction effects of the high-tech industry context on the valuation of R&D intensity and patents, suggesting that the high-tech industry does not differentially value R&D intensity compared to other sectors. These insights contribute to a nuanced understanding of the role of R&D in IPOs and challenge prevailing assumptions in the field. For finance practitioners and IPO strategists, the findings offer essential insights for optimizing IPO preparation and strategy. |
| Item Type: | Essay (Master) |
| Faculty: | BMS: Behavioural, Management and Social Sciences |
| Subject: | 85 business administration, organizational science |
| Programme: | Business Administration MSc (60644) |
| Link to this item: | https://purl.utwente.nl/essays/98272 |
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