Media Reporting and IPO Pricing——Empirical Evidence from Companies Listed in the Small Board of Shenzhen

Abstract

Abstract:

Using the data of 401 companies listed from 2009 to 2012 in the small board of Shenzhen, the paper examines the relationship between media reporting and IPO pricing from the dimensions of both media coverage and media supervision. The empirical results show that media coverage can significantly improve IPO pricing, but media supervision can significantly reduce IPO pricing. Further study finds that media has a bigger effect on IPO pricing in regions under better regulatory protection. Evidence also suggests that the media impact on IPO pricing decisions is realized mainly through the influence of media on offer level of inquiry institutions.

Key words: media coverage, media supervision, offer level of inquiry institutions, IPO pricing

Niu Feng, Ye Yong, Cheng Xiaodong. Media Reporting and IPO Pricing——Empirical Evidence from Companies Listed in the Small Board of Shenzhen[J]. , 2017, 29(11): 50-61.

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