The impact of media sentiments on IPO underpricing

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Vikas Gupta ◽  
Shveta Singh ◽  
Surendra S. Yadav
Keyword(s):  
Initial Public Offerings ◽  
Investment Strategy ◽  
Ipo Underpricing ◽  
Content Type ◽  
Ipo Performance ◽  
Post Market ◽  
The Media ◽  
Sentiment Score ◽  
The Impact

Purpose In initial public offerings (IPOs), the media plays a pivotal role by disseminating the information to the investors who generally lack the expertise to understand the information through the prospectus. Thus, media coverage can impact the investment decision of the investors and the IPO performance. Media typically covers the IPO before listing, suggesting that it may play an important role in explaining the opening price rather than the closing price on the day of listing. Therefore, this study aims to disaggregate the traditional IPO underpricing into three categories: voluntary, pre-market and post-market and provides a comparative analysis of the media sentiments impact on the traditional and disaggregated IPO underpricing. The authors’ disaggregated IPO underpricing analysis will facilitate the investors in making an effective investment strategy based on media sentiments. Design/methodology/approach The study deploys sentiment analysis using bags of n (2) grams approach to gauge the sentiments on 2,891 media articles and uses “robust-regression” technique to analyze them on a sample of 222 Indian IPOs during 2009–2018. Findings The study reports that the sentiment score is positively related to the traditional underpricing; the sentiment score is positively associated with the pre-market underpricing and does not have any significant relationship with the post-market underpricing; the number of media articles does not play a significant role in explaining the IPO underpricing. The findings highlight the presence of a semi-strong form of efficiency in the Indian IPO market. Originality/value Existing literature focuses that the role of media on IPO performance is based on the developed countries. IPO laws differ based on the countries. For instance, in India, investors can check the demand by the other categories of investors on a real-time basis. Thus, it is interesting to study whether, with such a high level of transparency, media can explain IPO performance in the Indian market. Media generally covers IPO before listing; therefore, the present study disaggregates the IPO underpricing to evaluate the role of media on the primary and secondary market separately. It will help the investors to decide when to enter and exit the market.

Stage financing and syndication in the IPO underpricing of venture-backed firms: Venture capital and IPO underpricing

2019 ◽  
Vol 20 (4) ◽  
pp. 289-300 ◽  
Author(s):  
Awounou-N’dri Honorine ◽  
Dubocage Emmanuelle
Keyword(s):  
Venture Capital ◽  
Information Asymmetry ◽  
Initial Public Offerings ◽  
Capital Investment ◽  
Ipo Underpricing ◽  
Data Set ◽  
Public Offerings ◽  
Venture Capital Investment ◽  
Ipo Performance ◽  
The Impact

The article investigates the impact of stage financing and syndication practices on the underpricing level of venture-backed firms (VBFs) undertaking their initial public offerings (IPOs). This empirical study uses a unique hand-collected data set concerning more than 260 VBFs that went public on Euronext Paris and Alternext between 1997 and 2013. Our findings suggest a lower level of underpricing for firms backed by syndicated venture capital investment. Additionally, we find that the syndicate size is negatively associated with the level of underpricing. However, there is no evidence that stage financing has a significant impact. Syndication thus appears to be the only relevant mechanism to improve IPO performance (measured by the underpricing level), as it reduces agency costs and information asymmetry between the different stakeholders in an IPO process.

Media attention and corporate disaster relief: evidence from China

2017 ◽  
Vol 26 (1) ◽  
pp. 2-12 ◽  
Author(s):  
Zhe Ouyang ◽  
Jiuchang Wei ◽  
Yu Xiao ◽  
Fei Wang
Keyword(s):  
Media Coverage ◽  
Disaster Relief ◽  
Future Research ◽  
Yushu Earthquake ◽  
Content Type ◽  
Media Attention ◽  
The Media ◽  
The Impact ◽  
Chinese Search Engine

Purpose The purpose of this paper is to examine the impact of media attention on corporate disaster relief. Design/methodology/approach The authors used a matched sample research design, which is considered more appropriate than a random sample design for studying events that have low-occurrence rates in general. For each donor firm in the Yushu earthquake, the authors matched the firm with a non-donor firm in the same industry and with a firm size of within ±30 percent of the total assets in the year prior to the year of the occurrence of the Yushu earthquake. Then, using the Baidu engine, which is the most popular Chinese search engine, the authors captured the online media attention to the donor firms and their disaster relief. Findings The authors found that media attention drove corporate disaster relief. Research limitations/implications Although the authors highlighted the role of the media as an important stakeholder in influencing corporate disaster relief, the authors did not fully explore the media’s influence. Future research should delve more deeply into the impact of the tenor of media coverage on corporate disaster relief. Originality/value This study reveals that the media, a particularly powerful stakeholder, can be a corporate disaster relief driver in China.

Effect of nature of the game on ad-persuasion in online gaming context

2017 ◽  
Vol 27 (1) ◽  
pp. 52-73 ◽  
Author(s):  
Devika Vashisht ◽  
Sreejesh S.
Keyword(s):  
Online Advertising ◽  
Content Type ◽  
Planning Strategy ◽  
Brand Recall ◽  
Brand Placements ◽  
The Media ◽  
The Impact ◽  
Positive Effect ◽  
Selection Of

Purpose The purpose of this paper is to examine the effect of nature of advergame and moderating roles of game-product congruence and need for cognition (NFC) on gamers’ ad-persuasion from attention and elaboration perspectives. Design/methodology/approach A 2 (nature of game: fast or slow)×2 (game-product congruence: high or low)×2 (NFC: high or low) between measures design is used. In total, 224 graduate students participated in the study. A 2×2×2 between subjects ANOVA is used to test the hypotheses. Findings The results show that slow-paced advergames result in high persuasion than fast-paced advergames. A 2 way-interaction indicates that for a slow-paced advergame, low game-product congruence result in high persuasion than in high game-product congruence. Furthermore, findings reveal that for a slow-paced advergame with low game-product congruence, subjects with high NFC report high persuasion than subjects with low NFC. For a fast-paced advergame with low game-product congruence, subjects with high NFC report high persuasion than subjects with low NFC. Practical implications The findings of the study are very important for advertising practitioners as selection of media that fit the advertised product with reference to the content of the media is a planning strategy that has been widely used by media planners. Thus, if high brand recall and recognition is the primary goal for advertisers, then, slow-paced advergames with low-congruent brand placements can be considered a better media strategy for in-game advertising. Furthermore, advertising managers can design advergames by taking into account NFC factor to make sure that the implementation has the strongest positive effect on consumers’ persuasion. Furthermore, advertising managers can design advergames by taking into account NFC factor to make sure that the implementation has the strongest positive effect on consumers’ persuasion. Originality/value This research contributes to the literature of non-traditional online advertising, specifically advergaming context by exploring the impact of nature of game and game-product congruence on gamers’ ad-persuasion. Also, this study is the first attempt toward understanding the moderating role of NFC on gamers’ ad-persuasion in the context of online advertising.

Impact of news sentiment and topics on IPO underpricing: US evidence

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Elena Fedorova ◽  
Sergei Druchok ◽  
Pavel Drogovoz
Keyword(s):  
Initial Public Offerings ◽  
Initial Public Offering ◽  
Latent Dirichlet Allocation ◽  
Classification And Regression Tree ◽  
Ipo Underpricing ◽  
Content Type ◽  
Thomson Reuters ◽  
The Usa ◽  
The Media ◽  
News Sentiment

Purpose The goal of the study is to examine the effects of news sentiment and topics dominating in the news field prior to the initial public offering (IPO) on the IPO underpricing. Design/methodology/approach The authors’ approach has several steps. The first is textual analysis. To detect the dominating topics in the news, the authors use Latent Dirichlet allocation. The authors use bidirectional encoder representations from transformers (BERT) pretrained on financial news corpus to evaluate the tonality of articles. The second is evaluation of feature importance. To this end, a linear regression with robust estimators and Classification and Regression Tree and Random Forest are used. The third is data. The text data consists of 345,731 news articles from Thomson Reuters related to the USA in the date range from 1 January 2011 to 31 May 2018. The data contains all the possible topics from the website, excluding anything related to sports. The sample of 386 initial public offerings completed in the USA from 1 January 2011 to 31 May 2018 was collected from Bloomberg Database. Findings The authors found that sentiment of the media regarding the companies going public influences IPO underpricing. Some topics, namely, the climate change and environmental policies and the trade war between the US and China, have influence on IPO underpricing if they appear in the media prior to the IPO day. Originality/value The puzzle of IPO underpricing is studied from the point of Narrative Economics theory for the first time. While most of the works cover only some specific news segment, we use Thomson Reuters news aggregator, which uses such sources The New York Post, CNN, Fox, Atlantic, The Washington Post ? Buzzfeed. To evaluate the sentiment of the articles, a state-of-the-art approach BERT is used. The hypothesis that some common narratives or topics in the public discussion may impose influence on such example of biased behaviour like IPO underpricing has also found confirmation.

Impact of anchor investors on IPO returns during pre-market and aftermarket: evidence from India

2019 ◽  
Vol 17 (3) ◽  
pp. 351-368 ◽  
Author(s):  
Vikas Gupta ◽  
Shveta Singh ◽  
Surendra S. Yadav
Keyword(s):  
Empirical Analysis ◽  
Initial Public Offering ◽  
Robust Regression ◽  
Stock Exchange ◽  
Ipo Underpricing ◽  
Content Type ◽  
Long Run ◽  
Post Market ◽  
The Impact ◽  
The Empirical Analysis

Purpose The unique regulatory design of India provides us with the opportunity to disaggregate traditional initial public offering (IPO) underpricing into three categories: voluntary, pre-market and post-market. The presence of anchor investors in India makes it a compelling case to study. These individuals were introduced to bring transparency in the book building process, but their impact on pre-market and post-market underpricing was not foreseen. Therefore, the purpose of this paper is to evaluate the impact of anchor investors on the IPO underpricing after disaggregation and on the long-run performance of an IPO. Design/methodology/approach A sample covering 232 IPOs from a period of 2009–2018 is included. The empirical analysis explores the impact of various firm-specific as well as market-specific variables on IPO underpricing. The financial data for the empirical analysis are extracted from Prime database and websites of National Stock Exchange and Bombay Stock Exchange. To deal with the outliers effectively, this paper deploys “robust-regression.” Findings The study finds that investor’s subscription rate and voluntary underpricing impacts the pre-market but do not have any impact on the post-market while the age of the firm has a different impact on both the markets and the number of anchor investors have the same impact in both markets. Anchor investors’ participation increases the pre-market as well as post-market underpricing. Lastly, the long-term performance of IPOs backed by the anchor investors is high relative to the IPOs not subscribed to by the anchor investors. Originality/value This paper is believed to be the first attempt to study the impact of anchor investors on the disaggregated IPO underpricing. The findings of this study will have a great insight for the investors.

scholarly journals The effect of underwriter’s market share, spread and management earnings forecasts bias and accuracy on underpricing of Malaysian IPOs

2016 ◽  
Vol 12 (3) ◽  
pp. 351-371 ◽  
Author(s):  
Mohammed Abdullah Ammer ◽  
Nurwati A. Ahmad-Zaluki
Keyword(s):  
Initial Public Offerings ◽  
Market Share ◽  
Univariate Analysis ◽  
Earnings Forecasts ◽  
Ordinary Least Squares ◽  
Management Earnings Forecasts ◽  
Ipo Underpricing ◽  
Policy Makers ◽  
Content Type ◽  
The Impact

Purpose – Underpricing is one of the most important anomalies associated with initial public offerings (IPOs). The purpose of this paper is twofold; first, it examines the impact of underwriter’s market share and spread on the underpricing of IPOs; and second, it investigates the effect of management earnings forecasts bias and accuracy on the underpricing of IPOs. Design/methodology/approach – A sample of 190 Malaysian IPOs listing on the main market of Bursa Malaysia from January 1, 2002 to February 29, 2012 was used and collected data were analyzed through univariate analysis and pooled ordinary least squares regression. Findings – The empirical evidence shows that IPOs underwritten by underwriters as having high market share and charging low underwriting spread experience higher level of underpricing. The paper also finds that IPOs issued more biased earnings forecasts are related with severe underpricing. Finally, this paper reveals that the more accurate the earnings forecasts are, the more minimized will be the asymmetric information and hence, the less will be IPO underpricing. Practical implications – The paper has some implications for policy makers, investors and underwriters. First, this study offers some insights for policy makers who are responsible for Malaysian financial markets current reforms. Further, knowing the importance of the economic outcomes of the earnings forecasts on underpricing for policy makers, they may adopt the findings in their discussion of costs of litigation and potential modifications in the requirements of issuing earnings forecasts. For the investors, findings may improve their understanding of equity valuation and for the underwriters, it would assist them in identifying underwriting cost. Originality/value – This paper is considered the first study to extend IPO literature by investigating the relationships between underwriter’s market share, underwriter’s spread, earnings forecasts bias, earnings forecasts accuracy and IPO underpricing in an emerging country, such as Malaysia.

The More Control, the Better?

2014 ◽  
Vol 26 (2) ◽  
pp. 81-91 ◽  
Author(s):  
Jeeyun Oh ◽  
Mun-Young Chung ◽  
Sangyong Han
Keyword(s):  
Mixed Design ◽  
Negative Effects ◽  
Story Structure ◽  
Content Type ◽  
High User ◽  
User Control ◽  
Rigorous Research ◽  
Control Versus ◽  
The Media ◽  
The Impact

Despite of the popularity of interactive movie trailers, rigorous research on one of the most apparent features of these interfaces – the level of user control – has been scarce. This study explored the effects of user control on users’ immersion and enjoyment of the movie trailers, moderated by the content type. We conducted a 2 (high user control versus low user control) × 2 (drama film trailer versus documentary film trailer) mixed-design factorial experiment. The results showed that the level of user control over movie trailer interfaces decreased users’ immersion when the trailer had an element of traditional story structure, such as a drama film trailer. Participants in the high user control condition answered that they were less fascinated with, absorbed in, focused on, mentally involved with, and emotionally affected by the movie trailer than participants in the low user control condition only with the drama movie trailer. The negative effects of user control on the level of immersion for the drama trailer translated into users’ enjoyment. The impact of user control over interfaces on immersion and enjoyment varies depending on the nature of the media content, which suggests a possible trade-off between the level of user control and entertainment outcomes.

The Health of Refugees

2019 ◽  
Keyword(s):  
Age Groups ◽  
Refugee Health ◽  
Mass Movements ◽  
Ethical Challenges ◽  
Displaced Populations ◽  
Political Landscape ◽  
The Media ◽  
Multidisciplinary Perspective ◽  
The Impact

There have been significant changes in the numbers, patterns, and circumstances of refugees and in the political landscape to support humanitarianism since the publication of the first edition of this collection. Like the first edition, this volume provides a multidisciplinary perspective on refugee health, tracing the health repercussions on individuals and populations from the drivers of forced mass movements of populations from situations of conflict and other disasters through to the process of resettlement in countries other than their countries of origin. Drawing on the expertise of academics, practitioners, and UN frontline experts, the collection covers three main aspects of refugee health: the concepts, definitions, and context from a human rights, humanitarianism, and social determinants of health perspective; the intersection of vulnerabilities across age groups and settings; and the ethical challenges for practitioners and researchers working with forcibly displaced populations seeking to resettle. The collection concludes with an analysis of the role of the media in shaping our perceptions of refugees and the impact on policy and access to care.

scholarly journals Adolescence as a “critical period” in the heritage language use. Polish in Germany

2021 ◽  
Vol 7 (1) ◽  
pp. 301-315
Author(s):  
Hanna Pułaczewska
Keyword(s):  
Role Models ◽  
Personal Development ◽  
Critical Period ◽  
Growing Up ◽  
Age Related ◽  
The Media ◽  
Role Of Parents ◽  
Qualitative Part ◽  
The Impact

Abstract In the article, we consider the impact of adolescence upon the usage of Polish in Polish-German bilinguals raised and living in Germany and demonstrate how adolescence surfaces as a socially based “critical period” in this usage using results from a survey and interviews conducted with 30 teenagers. In the quantitative part of the study, we seek to establish whether adolescents’ age affected the pattern and quantity of their usage of Polish in the media and contacts with age peers, whether the latter two facets of growing up with Polish were interrelated, and which other factors affected peer-relevant activities in Polish. Both age and peer contact turned out to significantly affect the use of the media in Polish, while peer contact in Polish was affected by the parental use of Polish in parent-child communication. The qualitative part presents the context and motivation for using Polish by the youths in peer-relevant activities. We integrate the results with insights provided by child development psychology from the perspective of language socialisation theory and interpret the age-related decline of interest in the Polish media as an effect of a diminishing role of parents and the increasing role of age peers as role models in personal development.

Research on the Effects of Over-the-Counter Drug Advertising

1974 ◽  
Vol 4 (3) ◽  
pp. 223-226 ◽  
Author(s):  
Donald L. Kanter
Keyword(s):  
Drug Misuse ◽  
Pharmaceutical Advertising ◽  
Drug Usage ◽  
Over The Counter ◽  
Drug Advertising ◽  
The Social ◽  
The Media ◽  
Commercial Advertising ◽  
The Impact

Dr. Kanter presents a summary of his research assessing the role of OTC advertising in Influencing drug usage. His work represents the only systematic study of the impact of commercial advertising on drug usage. He stresses that advertising in itself does not directly lead to drug misuse but should be considered as part of a host of factors in the social environment and in the media environment that have significant influence in determining people's behavior. He also urged that the existing pharmaceutical advertising codes, which are often violated, be reviewed and strengthened.

Sign in / Sign up

Export Citation Format

Share Document