IDEAS home Printed from https://ideas.repec.org/a/taf/jmedec/v20y2007i4p259-287.html
   My bibliography  Save this article

Media Exposure or Media Hype: Evidence from Initial Public Offering Stocks in Taiwan

Author

Listed:
  • Woan-Yuh Jang

Abstract

It is frequently observed that the price at which a firm's stock is listed for its initial public offering (IPO) is considerably less than the price at which it trades at the end of its first day of trading, a phenomenon known as underpricing. This article examines how media-provided information affects IPO underpricing and trading turnover. The empirical findings show that the more media coverage a firm receives over a substantial period of time prior to its IPO, the smaller the degree to which its stock is underpriced. However, more media coverage immediately prior to the IPO date increases the degree of underpricing. It is also shown that the tenor of media coverage affects the relations between the volume of near-term, pre-IPO information provided by media and both underpricing and trading turnover.

Suggested Citation

  • Woan-Yuh Jang, 2007. "Media Exposure or Media Hype: Evidence from Initial Public Offering Stocks in Taiwan," Journal of Media Economics, Taylor & Francis Journals, vol. 20(4), pages 259-287.
    • Handle: RePEc:taf:jmedec:v:20:y:2007:i:4:p:259-287
    DOI: 10.1080/08997760701668151
    as

    Download full text from publisher

    File URL: http://www.tandfonline.com/doi/abs/10.1080/08997760701668151
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: https://libkey.io/10.1080/08997760701668151?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Zhe OuYang & Jia Xu & Jiuchang Wei & Yang Liu, 2017. "Information Asymmetry and Investor Reaction to Corporate Crisis: Media Reputation as a Stock Market Signal," Journal of Media Economics, Taylor & Francis Journals, vol. 30(2), pages 82-95, April.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:taf:jmedec:v:20:y:2007:i:4:p:259-287. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Chris Longhurst (email available below). General contact details of provider: http://www.tandfonline.com/HMEC20 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.