Essays about: "Stock Overvaluation"

Showing result 1 - 5 of 9 essays containing the words Stock Overvaluation.

  1. 1. Venture Capital-backing pre-IPO and Long-run Stock Performance

    University essay from

    Author : Björn Jakobsson; Viking Johansson; [2021-06-22]
    Keywords : venture capital backing; initial public offering; long-run stock performance; signaling theory;

    Abstract : This study aims to examine the effects that venture capital-backing has on companies that recently went public. The study examines three specific parts; a general stock return increasing signal of venture capital-backing, whether company characteristics affect the relationship between venture capital-backing and stock returns, and venture capital-backing in two specific industries. READ MORE

  3. 2. Momentum in ESG Indexes : A study on the passive capital flows effect on ESG stock prices

    University essay from Umeå universitet/Företagsekonomi

    Author : Levin Heger; Lisa Åkerman; [2021]
    Keywords : ESG; Momentum; Passive Investments; Index investments; ETFs; Sustainable Finance; Price-to-earnings; Overvaluation; Herd Investing;

    Abstract : The aim with this thesis is to investigate whether increased capital flows to ESG screened indexes create higher price-to-earnings (P/E) ratios and momentum in the included stocks during the chosen time period of three years, from 2018 to 2020. The thesis will evaluate the capital flows to ESG indexes and compare both performance and P/E ratios between those and their corresponding Mother indexes. READ MORE

  4. 3. Deal or No Deal - How Overvaluation and Governance Problems Drive Stock-Financed Acquisitions

    University essay from Handelshögskolan i Stockholm/Institutionen för finansiell ekonomi

    Author : Fabian Schimpf; Larissa Vogt; [2021]
    Keywords : Mergers and Acquisitions; Method of Payment; Stock Overvaluation; Corporate Governance; Shareholder Protection;

    Abstract : Theory suggests that overvalued firms can create value for their shareholders by exploiting their overvaluation to purchase less overvalued firms through stock-financed acquisitions. Recent evidence from the US indicates that these companies often fail to do so by significantly overpaying for their targets and destroying shareholder value in the long run. READ MORE

  5. 4. Overvalued stock: M&A or SEO? A study of the performance and decision making of overvalued firms.

    University essay from Handelshögskolan i Stockholm/Institutionen för finansiell ekonomi

    Author : Georges Chalami; Lucas Aras; [2019]
    Keywords : Overvaluation; mergers and acquisitions; seasoned equity offerings; operating performance; firm characteristics;

    Abstract : This study examines two ways of exploiting overvalued stock by US firms: Conducting a seasoned equity offering (SEO) or a stock swap acquisition. As market misvaluations provide short-term opportunities for managers to receive large potential gains, the decision of how to utilize stock overvaluation can have a significant impact on the value created. READ MORE

  6. 5. The stock market reaction towards acquisition announcements in different business cycles

    University essay from Göteborgs universitet/Graduate School

    Author : Mathias Karlsson; Jacob Sundquist; [2016-10-07]
    Keywords : Cumulative abnormal return; business cycle; free cash flow theory; overvaluation theory; method of payment;

    Abstract : We investigate whether the stock market reaction towards acquisition announcements is dependent on different business cycles. In addition, we examine if the stock market reaction is consistent with predictions in the free cash flow theory (Jensen, 1986) and the overvaluation theory (Myers & Majluf, 1984). READ MORE