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.

中文翻译：

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媒体情绪对IPO抑价的影响

目的

在首次公开募股 (IPO) 中，媒体通过向通常缺乏通过招股说明书了解信息的专业知识的投资者传播信息发挥着关键作用。因此，媒体报道会影响投资者的投资决策和 IPO 业绩。媒体通常在上市前报道IPO，暗示它可能在解释开盘价而不是上市当天的收盘价方面发挥重要作用。因此，本研究旨在将传统的 IPO 抑价分为三类：自愿、上市前和上市后，并对媒体情绪对传统和细分 IPO 抑价的影响进行比较分析。

设计/方法/方法

该研究使用 n (2) 克袋方法部署情绪分析来衡量 2,891 篇媒体文章的情绪，并使用“稳健回归”技术对 2009-2018 年期间的 222 份印度 IPO 样本进行分析。

发现

该研究报告称，情绪得分与传统的抑价正相关；情绪评分与上市前抑价正相关，与上市后抑价无显着关系；媒体文章的数量在解释 IPO 抑价方面没有发挥重要作用。调查结果强调了印度 IPO 市场存在一种半强效率的形式。

原创性/价值

现有文献集中于媒体对 IPO 绩效的作用是基于发达国家的。IPO 法律因国家/地区而异。例如，在印度，投资者可以实时查看其他类别投资者的需求。因此，研究具有如此高透明度的媒体是否可以解释印度市场的 IPO 表现是很有趣的。媒体普遍报道上市前的IPO；因此，本研究将 IPO 抑价分解，分别评估媒体在一级市场和二级市场上的作用。它将帮助投资者决定何时进入和退出市场。