Media Coverage and IPO Pricing Around the World
Research output: Journal Publications and Reviews (RGC: 21, 22, 62) › 21_Publication in refereed journal › peer-review
Author(s)
Related Research Unit(s)
Detail(s)
| Original language | English |
|---|---|
| Pages (from-to) | 1515-1553 |
| Journal / Publication | Journal of Financial and Quantitative Analysis |
| Volume | 55 |
| Issue number | 5 |
| Online published | 26 Jul 2019 |
| Publication status | Published - Aug 2020 |
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Abstract
We study how media coverage impacts pricing of IPOs around the world. Higher media coverage in the pre-IPO period leads to lower IPO initial returns. The effect is mitigated in countries with better financial reporting quality, greater shareholder rights protection, and more stringent media censorship, and for IPOs certified by reputable intermediaries, while it is amplified in countries with higher levels of media penetration and media trust. Further, IPOs with higher pre-IPO media coverage have lower ex-post price revision volatility. Our findings suggest that higher pre-IPO media coverage reduces information asymmetry among investors, leading to less underpriced IPOs.
Citation Format(s)
Media Coverage and IPO Pricing Around the World. / Chen, Yangyang; Goyal, Abhinav; Veeraraghavan, Madhu et al.
In: Journal of Financial and Quantitative Analysis, Vol. 55, No. 5, 08.2020, p. 1515-1553.
In: Journal of Financial and Quantitative Analysis, Vol. 55, No. 5, 08.2020, p. 1515-1553.
Research output: Journal Publications and Reviews (RGC: 21, 22, 62) › 21_Publication in refereed journal › peer-review
