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COVID-19 media sentiment and IPO underpricing

Author

Listed:
  • Feng, Jie
  • Pan, Wanbin
  • Tao, Libin
  • Hu, Wenjing

Abstract

Based on media coverage of the COVID-19 epidemic during 2020–2022, we construct media sentiment indicators to investigate their impact on IPO underpricing in China. We find that positive (negative) COVID-19 media sentiment significantly decreases (increases) IPO underpricing, and negative sentiment has a greater effect. In addition, the results indicate that COVID-19 media sentiment has significant effects on the IPO underpricing of private firms but not on that of state-owned enterprises.

Suggested Citation

  • Feng, Jie & Pan, Wanbin & Tao, Libin & Hu, Wenjing, 2024. "COVID-19 media sentiment and IPO underpricing," Economics Letters, Elsevier, vol. 234(C).
    • Handle: RePEc:eee:ecolet:v:234:y:2024:i:c:s0165176523005001
    DOI: 10.1016/j.econlet.2023.111474
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    References listed on IDEAS

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