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

Magnus Blomkvist, Timo Korkeamäki and John Pettersson

Economics Letters, 2017, vol. 159, issue C, 88-91

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.

Keywords: IPOs; Long-run performance; Firm quality (search for similar items in EconPapers)
JEL-codes: G12 G32 (search for similar items in EconPapers)
Date: 2017
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Citations: View citations in EconPapers (1)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:ecolet:v:159:y:2017:i:c:p:88-91

DOI: 10.1016/j.econlet.2017.07.022

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