Research On Media Attention To The Performance Of New Shares

In recent years, more and more domestic and foreign scholars pay attention to the research topic of the impact of media attention on asset price. The research result shows that media attention will influence investor sentiment ultimately affect the asset price by attracting the attention of investors. And the performance of new shares on the IPO first day will also be affected by the impact of media attention. As an emerging market of capital market in china, many emotional traders in the whole market, what is the impaction of media attention to the new shares? Whether the market under pricing rate is the same with the secondary market premium rate? Different periods of media attention on the performance of new shares are the same? These questions urgently need to answer.This dissertation is focusing on media attention to the new shares as the research object. We begin with the develop history of media attention to the asset price in those developed countries, as well as the present situation of performance of the new shares in China. This paper selects all stocks listed from June2006to December2010.And we use the number of news reports which selected by Baidu News Advanced as the indicator of media attention index., other indicators such as company scale issue size, profit growth of company, company age, industry classification, control variables and so on. These indicators are joined in the model to measure the impact of media attention to the new shares performance. We use the new shares of a market suppression price rate and the two aspects of the secondary market premium rate for empirical analysis. Based on the reform of China’s IPO system, we try to give the theoretically reasonable explanation for the empirical results and investigate the microscopic mechanism of the impact of media attention to the asset prices. Finally, based on the empirical results, we put forward some suggestions that propose to increase market efficiency and improve market regulation.From a large number of studies, the results show that:Firstly, the media attentions have mainly influenced the secondary market premium rate and gave the positive impactions. The higher the premium rate of media attention for the primary market under pricing have a negative impact, But it’s not the cause of the main factors of the primary market under pricing; Secondly, although the performance of the media attention to new shares during the asset bubbles is not significant. But in most of the non-bubble period, the media attention to new shares has a significant impact. Thirdly, the media attention is not directly acting on the new share income, which mainly caused by the behavior of investors. Thus media attentions affect the new share income by attracting attention from investors. The formation of these conclusions can give investors a reasonable investment and guide investors to avoid a lot of sentiment investment. Also we hope that the regulatory agencies can give the effective monitoring media coverage, to avoid in the market. Finally, it’s proposed to increase market efficiency, improve market regulation policy recommendations from the empirical results,...