Investor relations and IPO performance

被引:68
作者
Chahine, Salim [1 ]
Colak, Gonul [2 ]
Hasan, Iftekhar [3 ]
Mazboudi, Mohamad [1 ]
机构
[1] Amer Univ Beirut, Beirut, Lebanon
[2] Hanken Sch Econ, Helsinki, Finland
[3] Fordham Univ, Univ Sydney, Bank Finland, New York, NY 10023 USA
基金
澳大利亚研究理事会;
关键词
Initial public offering; Investor relations; Media; Agency problems; Underwriters; Venture capitalists; Analyst forecasts; INITIAL PUBLIC OFFERINGS; INSTITUTIONAL INVESTORS; TEXTUAL ANALYSIS; MEDIA COVERAGE; PRESS RELEASES; PRICE; SENTIMENT; FIRMS; MONEY; RISK;
D O I
10.1007/s11142-019-09526-8
中图分类号
F8 [财政、金融];
学科分类号
0202 ;
摘要
We analyze the value of investor relations (IR) strategies to IPO firms. We find that firms that are less visible and have inexperienced management tend to hire IR consultants prior to the issue date. IR consultants help create positive news coverage before an IPO, as reflected in a more optimistic tone of published media. Their presence is associated with higher underpricing at the IPO date but with lower long-run returns. IR-backed IPOs also exhibit disproportionately higher insider-related agency problems, as IR-induced higher underpricing tends to occur primarily in IPOs where underwriter and venture capitalist agency conflicts are more severe. These findings suggest that the IR programs of IPO firm are mostly short-term oriented and facilitate the ulterior motives of some insiders (underwriters and venture capitalists) targeting higher first-day returns.
引用
收藏
页码:474 / 512
页数:39
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