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Do vocal cues matter in information disclosure? Evidence from IPO online roadshows in the SSE STAR market

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  • Zhang, Shengpeng
  • Li, Yaokuang
  • He, Yu
  • Liang, Ruixin

Abstract

In this study, we investigate whether vocal cues expressed by management in IPO online roadshows in the SSE STAR Market play an information role. Using deep learning techniques, we classify the emotional tendencies of vocal cues in IPO online roadshows and construct quantitative proxy variables. After a series of empirical analyses, we find that vocal emotions are positively associated with first-day stock returns after IPO. In addition, we find that vocal emotions have predictive power for future operating performance after IPO. Our findings still hold after a series of robustness checks. Through additional analyses, we provide evidence that information content in the prospectus and investor sentiment play moderating and mediating roles, respectively, in the relationship between vocal emotions and the first-day stock returns after IPO. Moreover, we find that the vocal emotions expressed in the presentation section and the management tone in the Q&A section develop synergistic effects. Finally, we find that the information role played by vocal emotions exhibits timeliness. Our findings elucidate the information role of vocal cues and highlight the importance of IPO online roadshows in the SSE STAR Market.

Suggested Citation

  • Zhang, Shengpeng & Li, Yaokuang & He, Yu & Liang, Ruixin, 2024. "Do vocal cues matter in information disclosure? Evidence from IPO online roadshows in the SSE STAR market," International Review of Financial Analysis, Elsevier, vol. 93(C).
    • Handle: RePEc:eee:finana:v:93:y:2024:i:c:s1057521924001613
    DOI: 10.1016/j.irfa.2024.103229
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    More about this item

    Keywords

    IPO online roadshow; Operating performance; Stock performance; SSE STAR market; Vocal cues;
    All these keywords.

    JEL classification:

    • G14 - Financial Economics - - General Financial Markets - - - Information and Market Efficiency; Event Studies; Insider Trading
    • G32 - Financial Economics - - Corporate Finance and Governance - - - Financing Policy; Financial Risk and Risk Management; Capital and Ownership Structure; Value of Firms; Goodwill
    • G41 - Financial Economics - - Behavioral Finance - - - Role and Effects of Psychological, Emotional, Social, and Cognitive Factors on Decision Making in Financial Markets
    • M41 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Accounting - - - Accounting
    • M48 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Accounting - - - Government Policy and Regulation

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