Are Ipos Really Underpriced?
A 2001 paper by Swaminathan and Purnanandam on event-driven strategies in equities, using a linear factor model on a 1980–1997 sample: the abstract mentions profits and leaves out a benchmark, an out-of-sample test, transaction costs, multiple testing and the size of the universe.
“In a sample of more than 2000 IPOs from 1980 to 1997, we find that the median IPO is overvalued at the offer by about 50% relative to its industry peers.”
AssetEquitiessingle stocks
StrategyEvent-driven strategies
TechniqueLinear factor model
GeographyEurope
Also stated: 1980–1997, Profit
Missing from abstract: benchmark, out-of-sample test, costs, multiple testing, universe
Institutional-grade audit of this strategy.
£5 — Request the audit- Audit of the paper claims accounting for costs, luck, crises, originality, geography, etc.
- Reproduction code integratable into Bloomberg, IBKR, etc.
- Bias-free datasets for backtesting included
- Delivered in 2 working days
The paper's neighbourhoodEvent-driven strategies by year
FamilyEvent-driven strategies52Momentum and trend following289Factor investing240Machine learning return prediction15318 more · 950
AssetEquities40
The family is counted across the whole universe. Asset, method and authors are counted inside the family.
| Similar papers | citation | same method | same asset | same authors | |
|---|---|---|---|---|---|
| Firm Characteristics and the Cross-Sectional Variation in Post-Earnings Announcement Drift by DiPasquale | 2026 | ||||
| Listening to the Tape Does Earnings Press-Release Language Predict Post-Announcement Returns? by Nag | 2026 | ||||
| When Early Reporters Are Late: Reporting Delay Decomposition, Analyst Disagreement, and Return Predictability by C | 2026 | ||||
| Analyst Forecast Dispersion, Anomaly Decay, and Post-Earnings Drift under Monetary Policy Uncertainty by Redoy | 2026 | ||||
| Which Voices Move Markets? Speaker Identity and the Cross-Section of Post-Earnings Returns by Sidhu et al. | 2026 |