Initial Public Offerings (IPO)

portfolios also perform well for up to 3 years in the aftermarket. On the other hand,

value and growth styles do not offer significant returns in the aftermarket, as shown

in the univariate analysis once we control for the effects of size and sponsor quality.

2.5 Conclusion

We extend the style investing literature by using style analysis to examine the after-

market performance of IPOs. Specifically, we analyze value, growth, small-cap, and

large-cap style IPO portfolios, as well as combinations of these style categories.

Additionally, we identify underwriter quality as a style selection criterion in the IPO

market. Several interesting conclusions emerge. ...