The Performance of Finnish and Swedish Post-Portfolio Companies: Evidence Based on Market Prices
Pallonen, Henri (2014)
Pallonen, Henri
2014
Kuvaus
Opinnäytetyö kokotekstinä PDF-muodossa.
Tiivistelmä
This research is based on a handpicked dataset of Finnish and Swedish companies that private equity companies have floated to stock markets. The performance is determined from the abnormal returns of the underlying stock during the first 252 intradays.
For every company abnormal returns are calculated for three different indeces. This methodology is based on the major studies on the field. These results are examined in-dividually. Calculations were made with bootsrapping method because of the small sample size. P-values were calculated from the simulated samples.
Results showed that post-portfolio companies have not been able to achive abnormal returns in Finland or in Sweden. Some of the results have indications that with larger sample size hypothesis could possibly be supported.
This study was not able to offer statistically significant results. However, this study shows that investors should investigate post-portfolio for possible abnormal returns. If larger sample would provide different results investor could create an investment strate-gy around companies that private equity companies are floating. In addition private eq-uity market is growing rapidly and it creates investment opportunitues also outside the close-end private equity funds.
For every company abnormal returns are calculated for three different indeces. This methodology is based on the major studies on the field. These results are examined in-dividually. Calculations were made with bootsrapping method because of the small sample size. P-values were calculated from the simulated samples.
Results showed that post-portfolio companies have not been able to achive abnormal returns in Finland or in Sweden. Some of the results have indications that with larger sample size hypothesis could possibly be supported.
This study was not able to offer statistically significant results. However, this study shows that investors should investigate post-portfolio for possible abnormal returns. If larger sample would provide different results investor could create an investment strate-gy around companies that private equity companies are floating. In addition private eq-uity market is growing rapidly and it creates investment opportunitues also outside the close-end private equity funds.