Media Coverage and IPO Pricing Around the World

Chen, Yangyang and Goyal, Abhinav and Veeraraghavan, Madhu (2018) Media Coverage and IPO Pricing Around the World. In: Asian Finance Association (AsianFA) 2018 Conference, 24-27, June 2018, Japan.

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Abstract

We study how media coverage impacts pricing of initial public offerings (IPOs) around the world. High 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 for IPOs certified by reputable intermediaries, while accentuated in countries with higher level of media penetration and for articles discussing IPO firms’ fundamentals. Further, when media coverage is high, information is more fully impounded in price revisions. Taken together, our findings are consistent with media coverage alleviating informational frictions among investors, resulting in less underpriced IPOs.

Item Type:	Conference or Workshop Item (Paper)
Uncontrolled Keywords:	Media coverage, IPO initial return, information asymmetry, IPO underpricing
Subjects:	Finance
Divisions:	Finance and Strategy
Depositing User:	Madhan Muthu
Date Deposited:	07 Sep 2018 04:56
Last Modified:	12 Sep 2018 11:19
URI:	http://tapmi.informaticsglobal.com/id/eprint/4

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