Can management tone predict IPO performance? – Evidence from mandatory online roadshows in China

Document Type

Article

Publication Date

9-1-2021

Abstract

In this study, we investigate the relation between the sentiment of online roadshow texts and IPO first-day returns as well as post-IPO operating performancein China's stock market. Our results suggest that a higher positive tone in management's responses and comments during online roadshows is significantly associated with greater first-day returns. The results also show that the management tone is significantly and positively related to post-IPO operating performance. Our study indicates that the tone of online roadshows is informative and its information content has important implications for understanding IPO first-day returns and future operating performance in China's stock market.

Identifier

85107803564 (Scopus)

Publication Title

Pacific Basin Finance Journal

External Full Text Location

https://doi.org/10.1016/j.pacfin.2021.101588

ISSN

0927538X

Volume

68

Grant

2020110930

Fund Ref

National Office for Philosophy and Social Sciences

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