Does the media help or hurt retail investors during the IPO quiet period?

• 成果类型: Article
• 署名作者: Bushee, Brian; Cedergren, Matthew; Michels, Jeremy
• 署名单位: University of Pennsylvania
• 刊物名称: JOURNAL OF ACCOUNTING & ECONOMICS
• ISSN/ISSBN: 0165-4101
• DOI: 10.1016/j.jacceco.2019.101261
• 发表日期: 2020
• 关键词: economic consequences; disclosure; INVESTMENT; MARKETS; traders; news; ACT

摘要

We examine how the media influences retail trade and market returns during the quiet period that follows a firm's IPO. We find that more media coverage during this period is associated with more purchases by retail investors and that such purchases are attention-driven, rather than information-based. Further, these retail trades are negatively associated with stock returns at the firm's first earnings announcement post-IPO. Our results suggest that media coverage, combined with market frictions that limit price efficiency in the post-IPO period, leads to worse investing outcomes for retail investors. (C) 2019 Elsevier B.V. All rights reserved.