Author : Jiaxing You
Publisher :
ISBN 13 :
Total Pages : 60 pages
Book Rating : 4.:/5 (13 download)
Book Synopsis Driving the Presence of Investor Sentiment by : Jiaxing You
Download or read book Driving the Presence of Investor Sentiment written by Jiaxing You and published by . This book was released on 2018 with total page 60 pages. Available in PDF, EPUB and Kindle. Book excerpt: We read all newspaper articles to measure the pre-IPO media tone for 1,068 Chinese book-built IPOs issued from 2005-2013. We document significant and robust evidence that media tone is related to high IPO first-day returns and low long-run abnormal returns. One positive newspaper article can predict an increase of 2.38 - 9.42 percentage points in first-day returns and a decrease of 3.26 - 10.09 percentage points in post-IPO three-year abnormal returns. Further analysis reveals that high pre-IPO media tone is positively associated with first-day retail trading and retail demand in the IPO market, indicating that pre-IPO media tone can enhance the presence of investor sentiment around the IPO event. Taken together, these findings are consistent with our hypothesis that media tone can influence post-IPO prices through the presence of investor sentiment, leading to high first-day returns and low long-run stock performance.