The thesis is a quantitative study examining the correlation between IPO underpricing andinside ownership and whether subgroups' significance has a greater effect on underpricing.The methodology of this study involved employing OLS regression analysis. Literature on IPO underpricing and ownership is primarily focused on the relationship between institutionalinvestors. Furthermore, previous literature on IPOs and ownership have been conducted onthe dilution of inside ownership post-introduction and retention rate concerning the firm's quality.
The contribution of the study is to the literature on IPO underpricing and asymmetricinformation due to inside ownership. In addition to previous literature, regarding underpricingof IPOs and the asymmetric information between inside and outside ownership. The resultsindicate that inside ownership increases underpricing of IPOs and that the subgroups CEO andBoard of Directors significantly influence underpricing in the Swedish stock market. Thestudy also investigated whether underpricing was affected by insider holding during uncertainperiods such as the COVID-19 pandemic, but no evidence supporting this hypothesis wasfound.