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Does management tone matter in information disclosure? Evidence from IPO online roadshows in the SSE STAR market

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  • Zhang, Shengpeng
  • Li, Yaokuang
  • Liang, Ruixin
  • He, Yu

Abstract

This paper explores whether management tone in IPO online roadshows in the SSE STAR Market matters in information disclosure. We apply bag-of-words and machine learning methods to construct proxies for management tone, respectively. After conducting a series of empirical analyses, we find that management tone is positively associated with first-day stock returns and future operating performance after IPO. In additional analyses, we provide evidence that the information role played by management tone is transitory and that stock price reversals exist. Then, we document that investor sentiment has a mediating effect on the relationship between management tone and first-day stock returns after IPO. Finally, we demonstrate that compared with forward-looking statements, historical statements in management response texts provide more valuable information. Our research findings confirm that the management tone in IPO online roadshows plays an important information role, despite dramatic changes in information disclosure and stock offering systems in the SSE STAR Market.

Suggested Citation

  • Zhang, Shengpeng & Li, Yaokuang & Liang, Ruixin & He, Yu, 2024. "Does management tone matter in information disclosure? Evidence from IPO online roadshows in the SSE STAR market," International Review of Financial Analysis, Elsevier, vol. 94(C).
    • Handle: RePEc:eee:finana:v:94:y:2024:i:c:s1057521924002394
    DOI: 10.1016/j.irfa.2024.103307
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    More about this item

    Keywords

    Management tone; IPO online roadshows; Information disclosure; SSE STAR market;
    All these keywords.

    JEL classification:

    • G14 - Financial Economics - - General Financial Markets - - - Information and Market Efficiency; Event Studies; Insider Trading
    • G15 - Financial Economics - - General Financial Markets - - - International Financial Markets
    • G32 - Financial Economics - - Corporate Finance and Governance - - - Financing Policy; Financial Risk and Risk Management; Capital and Ownership Structure; Value of Firms; Goodwill
    • G41 - Financial Economics - - Behavioral Finance - - - Role and Effects of Psychological, Emotional, Social, and Cognitive Factors on Decision Making in Financial Markets
    • M41 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Accounting - - - Accounting
    • M48 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Accounting - - - Government Policy and Regulation

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