Impact Of Media Reports On Internet Companies' IPO Prices

IPO pricing has always been a difficult problem in the financial market.Overpriced,investors will be discouraged.If the price is too low,the company will lose money.In many countries and markets,IPO's underpricing and premium issues are both subjects that have been deeply studied.Many researchers hope to find out the price rule of IPO from these markets and give a model of IPO pricing.However,to date,the pricing of IPOs has been difficult to articulate.One of these is the Internet industry,which has grown strongly in recent years.What role does the media as an information broadcaster play in IPO pricing?Many studies have pointed out that media coverage will largely affect the initial price of IPOs and their subsequent turnover.Media reports are likely to have an effect on the price or premium of IPO prices.This depends to a large extent on the nature or bias of media reports.Under the media's neutral,negative and positive reports of different nature,whether IPO prices will be affected will be affected.Second,compared with other industries,Internet companies are more susceptible to media reports.About the main research process of this paper,the first is to develop a research program,design model.Then,according to the variables in the model,the listed company's corresponding information is selected.Next,through financial search,financial and economic media reports on IPO issuing companies are searched,and financial media reports with a large market share and circulation are selected."21st Century Business Herald,"Shanghai Securities Journal," "First Financial Daily," "Securities Times," and "Securities Daily," the five major financial media reports on the analysis.In the experimental design,the design model It is important to highlight the different nature of media reports,so this article specifically sets a model for the nature of media reporting and brings this model to the main model to determine the impact of the nature of different reports on the IPO prices of companies.The nature of the media reports is based on the vocabulary of specific colors in the report,and according to the final test results,it can be concluded that the negative media reports have a negative impact on the IPO price of the company,since this article focuses on Internet companies.On this basis,continue to explain the impact of negative reports on Internet companies for the sake of better explanation,it has also been added to the comparison between mining companies and internet companies,and from the perspective of the inspection structure,the IPO prices of internet companies are more susceptible to the negative reports of the media than the mining industry.It should be determined with the ownership of Internet companies and the nature of their industries,so it can be argued that negative media coverage will bring down pricing for companies' IPOs,and Internet companies' IPO prices are more vulnerable to negative corporate reports.