The impact of media coverage on IPO stock performance

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• 作者：Orhun Guldiken^a ; ^{oguldiken01@manhattan.edu} ; Christina Tupper^b ; ^{ctupper@ncat.edu} ; Anil Nair^c ; ^{anair@odu.edu} ; Huizhi Yu^c ; ^{hyuxx005@odu.edu}
• 关键词：Media ; Initial public offerings ; Signaling theory ; Uncertainty ; IPO stock performance
• 刊名：Journal of Business Research
• 出版年：2017
• 出版时间：March 2017
• 年：2017
• 卷：72
• 期：Complete
• 页码：24-32
• 全文大小：354 K
• 卷排序：72

文摘

This study uses signaling theory to examine the role of media coverage on IPO stock performance. Specifically, it investigates how coverage in credible financial media and the tone of media coverage about an IPO firm before and after its listing influence its stock performance. Results show that coverage in credible financial media about an IPO firm significantly impacts its stock price. Additionally, the findings show that uncertainty in the tone of media coverage about an IPO firm adversely influences its stock price. Overall, these findings contribute to signaling theory by addressing the impact of uncertain signals on investor behavior. Moreover, the findings reported in this study also contribute to the growing organizational literature on media by emphasizing the need for scholars to examine the content of media coverage, and specifically the role of uncertain media coverage, on firm-level variables.