Media Exposure or Media Hype: Evidence from Initial Public Offering Stocks in Taiwan
AbstractIt is frequently observed that the price at which a firm's stock is listed for its initial public offering (IPO) is considerably less than the price at which it trades at the end of its first day of trading, a phenomenon known as underpricing. This article examines how media-provided information affects IPO underpricing and trading turnover. The empirical findings show that the more media coverage a firm receives over a substantial period of time prior to its IPO, the smaller the degree to which its stock is underpriced. However, more media coverage immediately prior to the IPO date increases the degree of underpricing. It is also shown that the tenor of media coverage affects the relations between the volume of near-term, pre-IPO information provided by media and both underpricing and trading turnover.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoArticle provided by Taylor and Francis Journals in its journal Journal of Media Economics.
Volume (Year): 20 (2007)
Issue (Month): 4 ()
Contact details of provider:
Web page: http://www.informaworld.com/smpp/title~content=t775653677~db=jour
You can help add them by filling out this form.
reading list or among the top items on IDEAS.Access and download statisticsgeneral information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Michael McNulty).
If references are entirely missing, you can add them using this form.