| dc.description.abstract | This thesis examines the relationship between ESC disclosure and underpricing of IPOs
on Oslo Stock Exchange and Euronext Growth. By employing textual analysis methods
and an ESC dictionary, we construct a measure of ESC disclosure in IPO prospectuses for
all companies. Thus, solving issues with sample selection biases due to lacking coverage
from commercial rating agencies. We analyse a sample of 145 IPOs from January 2015
until December 2021 and find that a one standard deviation increase in our measure of
Environmental disclosure leads to a 1.44% increase in first-day returns. The results suggest
that Environmental disclosure increases investors' appetite for a stock in its initial offering
and that Social, Governance and ESC disclosure in total does not significantly affect a
stock's initial return. Hence, companies with relatively more Environmental disclosure
tend to yield better first-day trading results. | en_US |
