The marketing role of IPOs: evidence from internet stocks

• 成果类型: Article
• 署名作者: Demers, E; Lewellen, K
• 署名单位: University of Rochester
• 刊物名称: JOURNAL OF FINANCIAL ECONOMICS
• ISSN/ISSBN: 0304-405X
• DOI: 10.1016/S0304-405X(03)00072-2
• 发表日期: 2003
• 页码: 413-437
• 关键词: IPO; Underpricing; Marketing; internet; web traffic

摘要

This paper explores the potential marketing benefits of going public and of IPO underpricing. We examine the impact of IPO underpricing on website traffic, which is a direct measure of product market performance for internet firms. If underpricing attracts media attention and creates valuable publicity, we expect an increase in web traffic following the IPO. We find that web traffic growth in the month after the IPO is positively and significantly associated with initial returns, and the effect is economically significant. We also investigate media reaction to initial returns for a broader sample of IPOs. The results suggest that the marketing benefits of underpricing extend beyond the internet sector and the hot issues market of the late 1990s. (C) 2003 Elsevier Science B.V. All rights reserved.