| dc.description.abstract | In this thesis I empirically examine 41 initial public offerings (IPOs), carried out on the Oslo
Stock Exchange (OSE) between 2004 and 2006. In addition to investigating the underpricing
in general, the focus of this thesis is to study the relationship between IPO underpricing and
the quality of a company’s management. I hypothesize that companies with better and more
reputable managers will incur lower underpricing.
I find that the anomaly of underpricing is present in the Norwegian equity market, as the
distribution of the data is positively skewed. The average company in the sample is
underpriced by approximately 3%.
The analysis confirms the partial adjustment theory. In addition, I find that there are no
significant differences in underpricing across industries, or between venture backed and nonventure
backed companies.
Finally, I confirm my hypothesis that there is a negative relationship between management
quality and underpricing. | en |
