Media Tones,Investor Sentiment And IPO Underpricing

As early as the end of last century,the seeds of IPO underpricing research in the field of finance have sprouted,and have been a hot topic in this field for a long time.Throughout China's stock market,the myth of "new shares are invincible" continues,but this phenomenon usually has an obvious tendency of speculation,which is not conducive to the healthy development and normal operation of the IPO market,but also to the standardized market management mechanism and fair and efficient market trading environment.The Internet "sets up the stage",the news media "sings the opera",as an information medium,news media are becoming more and more important.After catching the "Internet" express train,news media,especially the network media,have become an important source of information that investors increasingly rely on.More importantly,the selective reporting tendency of news media to specific companies or specific events will not only affect the stock price volatility,but also shape the investor sentiment.So,what is the role of investor sentiment in this process?Is there any difference in the mediating effect of different investor groups?This paper holds that the research and discussion of the above problems has strong theoretical and practical significance.On the basis of the existing literature research,this paper tries to expand and extend,put the three variables of media tones,investor sentiment and IPO underpricing in the same research framework,construct the intermediary variable of investor sentiment,deeply explore the specific transmission mechanism and path among the three,and focus on the verification of whether investor sentiment has mediating effect in the influence mechanism.At the same time,in order to further analyze the role of different investment groups in the stock market,this paper further divides the investor sentiment into institutional investor sentiment and individual investor sentiment,respectively discusses the different roles of the two investor sentiment in the stock market,and finally confirms the leading position of individual investor sentiment from the perspective of empirical results and real stock market data.After analysis,this paper draws the following conclusions:First,there are significant differences in the degree of impact of different information spread by the news media on IPO underpricing,and there is a very obvious asymmetry.The impact of the negative tone of the media is several times more than that of the positive tone,and the significance level is higher.Second,media tone has a strong shaping and guiding role in investor sentiment,which can significantly affect investors'expectations and judgments of the future of the stock market,which is consistent with the proposition of "agenda setting theory" and has strong persuasion.Third,investor sentiment plays a part of the mediating effect.Furthermore,we find that individual investor sentiment plays a significant mediating role in the process of media tone affecting IPO underpricing,but we do not find that institutional investor sentiment have a significant mediating effect.This paper puts forward three immature suggestions:First,efforts should be made to foster and form a good atmosphere for sound competition and development in the media industry.Second,investors should treat media reports and stock price fluctuations rationally,improve their ability to distinguish between true and false information,and reduce irrational investment behavior.Third,regulatory agencies should focus on establishing a standardized market management mechanism,a sound legal and regulatory system,and a fair and efficient market environment for trading;restrict news media's excessive profit seeking,so as to avoid misleading investors and causing abnormal fluctuations in stock prices,and focus on improving the structure of investors,Increase the proportion of institutional investors and reduce the impact of speculative investment on the market.