Investor relations and IPO performance

Salim Chahine, Gonul Colak, Iftekhar Hasan*, Mohamad Mazboudi

*Motsvarande författare för detta arbete

Forskningsoutput: TidskriftsbidragArtikelPeer review

13 Citeringar (Scopus)

Sammanfattning

We analyze the value of investor relations (IR) strategies to IPO firms. We find that firms that are less visible and have inexperienced management tend to hire IR consultants prior to the issue date. IR consultants help create positive news coverage before an IPO, as reflected in a more optimistic tone of published media. Their presence is associated with higher underpricing at the IPO date but with lower long-run returns. IR-backed IPOs also exhibit disproportionately higher insider-related agency problems, as IR-induced higher underpricing tends to occur primarily in IPOs where underwriter and venture capitalist agency conflicts are more severe. These findings suggest that the IR programs of IPO firm are mostly short-term oriented and facilitate the ulterior motives of some insiders (underwriters and venture capitalists) targeting higher first-day returns.
OriginalspråkEngelska
Referentgranskad vetenskaplig tidskriftReview of Accounting Studies
Volym25
Utgåva2
Sidor (från-till)474-512
Antal sidor39
ISSN1380-6653
DOI
StatusPublicerad - 17.04.2020
MoE-publikationstypA1 Originalartikel i en vetenskaplig tidskrift

Nyckelord

  • 511 Nationalekonomi
  • 512 Företagsekonomi

Styrkeområden och områden med hög potential (AoS och AoHP)

  • AoS: Finansiering, redovisning och företagsstyrning

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