The Stock Market As a Capital Provider
Independent thesis Basic level (degree of Bachelor), 10 credits / 15 HE creditsStudent thesis
It is often stressed that the primary market of the Stockholm Stock Exchange (SSE) serves as a capital provider and a screening device. A postponed Initial Public Offering (IPO) is consequently pictured as an unfavorable occurrence for companies. The purpose of this thesis is to establish the importance of the SSE as a capital provider. The study, which adopts a phenomenologistic view of knowledge, therefore examines the stated motives for going public and the effect on operational business associated with a postponed IPO. As suggested by grounded theory, the research begun by interviewing experts and reviewing literature, which resulted in the following assumption: Postponing an IPO should have negative impact on operational business presupposed that the company states growth as an IPO-motive. Subsequently this assumption was examined by conducting 15 semi-structured interviews, characterized by an exploratory purpose, with companies having postponed their IPO. The largest discrepancy between our empirical findings and prior research is the considerable fraction of companies emphasizing the exit-opportunity for current owners as an IPO-motive. Further, the findings suggest operational business to be indifferent of whether the IPO is postponed, contradicting the postulated assumption. This is motivated by the accessibility of raising equity in the private market, explained by the remarkable acceleration of venture capitalists in Sweden during the last decade. Thus, it is concluded that the importance of the SSE as a capital provider has been reduced.
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IdentifiersURN: urn:nbn:se:su:diva-3510OAI: oai:DiVA.org:su-3510DiVA: diva2:192825