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Be wary of buying on the sizzle: Imagery language in IPO prospectuses

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  • Wuorinen, Stefan
  • Gao, He
  • Pan, Lingling
  • McNamara, Gerry

Abstract

•Entrepreneurs can use language to influence investors without commitment.•Imagery language in prospectuses increases initial public offering performance.•Imagery language negatively predicts firm long-term growth and innovation investments.•This disconnect provides benefits to new ventures at the expense of investors.•Investors must critically assess promises embedded in initial public offerings.

Suggested Citation

  • Wuorinen, Stefan & Gao, He & Pan, Lingling & McNamara, Gerry, 2025. "Be wary of buying on the sizzle: Imagery language in IPO prospectuses," Journal of Business Venturing Insights, Elsevier, vol. 23(C).
  • Handle: RePEc:eee:jobuve:v:23:y:2025:i:c:s2352673425000137
    DOI: 10.1016/j.jbvi.2025.e00526
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