The new issues puzzle revisited: The role of firm quality in explaining IPO returns

Magnus Blomkvist*, Timo Korkeamäki, John Pettersson

*Corresponding author for this work

Research output: Contribution to journalArticleScientificpeer-review

1 Citation (Scopus)

Abstract

We study the risk and return characteristics of IPOs for up to 60 months. After controlling for Asness et al. (2014) quality minus junk factor, IPOs outperform the benchmark portfolios. The previously-documented negative abnormal IPO returns may derive from inaccurate benchmarks.

Original languageEnglish
Pages (from-to)88-91
Number of pages4
JournalECONOMICS LETTERS
Volume159
DOIs
Publication statusPublished - 1 Oct 2017
MoE publication typeA1 Journal article-refereed

Keywords

  • Firm quality
  • IPOs
  • Long-run performance

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