Media coverage and IPO pricing around the world

Chen, Yangyang, Goyal, A ORCID: 0000-0002-9859-2117, Veeraraghavan, Madhu and Zolotoy, Leon (2020) Media coverage and IPO pricing around the world. Journal of Financial and Quantitative Analysis, 55 (5). pp. 1515-1553.

Text CGVZ, 2019, JFQA, Media coverage and IPO pricing around the world.pdf - Author Accepted Manuscript Download (841kB)

Abstract

We study how media coverage impacts pricing of initial public offerings (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.

Item Type:	Article
Additional Information:	Source info: Journal of Financial and Quantitative Analysis (JFQA), Forthcoming
Uncontrolled Keywords:	Media coverage, IPO pricing, information asymmetry
Depositing User:	Symplectic Admin
Date Deposited:	01 Feb 2019 08:37
Last Modified:	19 Jan 2023 01:05
DOI:	10.1017/S0022109019000486
Related URLs:	Author Publisher
URI:	https://livrepository.liverpool.ac.uk/id/eprint/3032095