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.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
Bibliographic InfoArticle provided by Taylor & Francis Journals in its journal Journal of Media Economics.
Volume (Year): 20 (2007)
Issue (Month): 4 ()
Contact details of provider:
Web page: http://www.tandfonline.com/HMEC20
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 you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.