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

Magnus Blomkvist, Timo Korkeamäki, John Erik Pettersson

Research output: Contribution to journalArticleScientificpeer-review

1 Citation (Scopus)


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
Peer-reviewed scientific journalEconomics Letters
Issue numberOctober
Pages (from-to)88-91
Number of pages4
Publication statusPublished - 10.2017
MoE publication typeA1 Journal article - refereed


  • 512 Business and Management
  • IPOs
  • Long-run performance
  • Firm quality

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