The impact of media sentiments on IPO underpricing

Gupta, Vikas, Singh, Shveta and Yadav, Surendra S. (2021) The impact of media sentiments on IPO underpricing. Journal of Asia Business Studies, 16 (5). pp. 786-801. ISSN 15587894

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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 sentiment

Item Type: Article
Keywords: Investment Strategy | IPO Underpricing | Post-Market Underpricing | Pre-Market Underpricing
Subjects: Social Sciences and humanities > Business, Management and Accounting > General Management
JGU School/Centre: Jindal Global Business School
Depositing User: Amees Mohammad
Date Deposited: 10 Feb 2022 06:46
Last Modified: 21 Feb 2023 11:24
Official URL:


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