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Prof. (Dr) Madhu Veeraraghavan – Publications

A Comprehensive Record of Peer-Reviewed Research and Global Academic Thought Leadership.

Published: July 26, 2019 (Online); August 2020 (Print)

Media coverage and IPO pricing around the world

We study how media coverage impacts pricing of initial public offerings (IPOs) around the world. Higher media coverage in the pre-IPO period leads to lower IPO initial returns. The effect is mitigated in countries with better financial reporting quality, greater shareholder rights protection, and more stringent media censorship, and for IPOs “certified” by reputable intermediaries, while it is amplified in countries with higher levels of media penetration and media trust. Further, IPOs with higher pre-IPO media coverage have lower ex post price revision volatility. Our findings suggest that higher pre-IPO media coverage reduces information asymmetry among investors, leading to less underpriced IPOs.

Publication Details:

Published: July 26, 2019 (Online); August 2020 (Print)

Volume: 55

Issue: 5

Pages: 1515–1553

Journal: Journal of Financial and Quantitative Analysis

Publication Status: Published

Scopus Citations: 104

Award: Best Paper Award of the 2018 Asian Finance Association Annual Meeting

Chen, Y., Goyal, A., Veeraraghavan, M., & Zolotoy, L. (2020). Media coverage and IPO pricing around the world. Journal of Financial and Quantitative Analysis, 55(5), 1515–1553.