Media legitimation effects in the market for initial public offerings

• 成果类型: Article
• 署名作者: Pollock, TG; Rindova, VP
• 署名单位: University System of Maryland; University of Maryland College Park
• 刊物名称: ACADEMY OF MANAGEMENT JOURNAL
• ISSN/ISSBN: 0001-4273
• DOI: 10.5465/30040654
• 发表日期: 2003
• 页码: 631-642
• 关键词: construction; performance; industry; ORGANIZATIONS; certification; reputation; coverage; anatomy; images; CHOICE

摘要

In this study, we argue that media-provided information affects investors' impressions of newly public firms. In 225 initial public offerings (IPOs), the volume of media provided information had a negative, diminishing relationship with underpricing and a positive, diminishing relationship with stock turnover on the first day of trading. The relationship between the tenor of media-provided information and underpricing increases at a nonlinear rate, and decreases similarly for turnover. Findings provide important evidence that publicly available information not only reflects IPOs' legitimacy, but also adds to their legitimacy and influences investor behavior.