Media Coverage And IPO Market Performance

In recent years,the rapid development of modern media, information dissemination and its advantage in speed, cost and other aspects of specialization, so that has become an important way for investors to access information, and thus impact on asset pricing is becoming increasingly important, and increasingly become the academic attention. Can media is to promote economic anomaly accelerant? China as an emerging capital market securities, started relatively late, less rational investors accounted characteristics make it vulnerable to "noise traders" influence "Herd" effect is remarkable. Are our IPO market also exists media effects? If present, the extent of impact? What factors could cause the performance difference between the media? Effects of differences in performance will last how long? Are changes in the external environment will cause differences in effects of the media? This series of questions need answers.Taking2005to2011listed IPO as the research object to the amount of media coverage will go over the period of the explanatory variables listed, building regression models to analyze an IPO on the first day of media effects. The empirical results show:First, the government holding a significant proportion affected by the tendency of the media; Second, China’s IPO market, there are significant effects of the media. Media exposure, positive reports and negative reports, the higher IPO underpricing; Third, the media exposure, positive reports and negative reports on the performance of IPO secondary market premium is not significant; Fourth, media exposure and positive reports turnover on the first day of IPO significantly affected, and the impact direction is negative, this conclusion and Pollock (2003), contrary to introduce their own variables will reverse the effects of the media to generate negative coverage of the IPO first day turnover is not directly affected. Fifth, the impact of differences in the nature of the industry IPO underpricing rate significantly. Manufacturing and mining industries IPO underpricing its nature a significant positive correlation.Comparative analysis of the empirical results, we find that China’s capital market is still there asymmetries in investor sentiment, and the difference was significant, reflecting the extent of investors’ negative reports higher than positive reports, shows that our investors hold positive reports "prudent" psychological characteristics of the negative reports of "radical". Before and after the share reform contrast media effects analysis found the perfect system to enhance the IPO media effects and improve the effectiveness of the media factor. In addition, a significant number of media influence media effects. Reports of listed companies is less, indicating that investors are more concerned about media content, while increasing the amount of media coverage from the "limited attention" theoretical point of view, investors may be more concerned about the listed companies themselves, often overlooked media content differences, when the report reaches a certain level, investors are "irrational" psychological gradual normalization "rational" from one-way to two-way reversing concern concern, not only concerned about the amount of media coverage, but also concerned about the media content.