Perceptions and Price: Evidence from CEO Presentations at IPO Roadshows

• 成果类型: Article
• 署名作者: Blankespoor, Elizabeth; Hendricks, Bradley E.; Miller, Gregory S.
• 署名单位: Stanford University; University of North Carolina; University of North Carolina Chapel Hill; University of Michigan System; University of Michigan
• 刊物名称: JOURNAL OF ACCOUNTING RESEARCH
• ISSN/ISSBN: 0021-8456
• DOI: 10.1111/1475-679X.12164
• 发表日期: 2017
• 页码: 275-327
• 关键词: initial public offerings; thin slices; NONVERBAL BEHAVIOR; accuracy; inferences; management; CONSEQUENCES; orientation; performance; appearance

摘要

This paper examines the relation between cognitive perceptions of management and firm valuation. We develop a composite measure of investor perception using 30-second content-filtered video clips of initial public offering (IPO) roadshow presentations. We show that this measure, designed to capture viewers' overall perceptions of a CEO, is positively associated with pricing at all stages of the IPO (proposed price, offer price, and end of first day of trading). The result is robust to controls for traditional determinants of firm value. We also show that firms with highly perceived management are more likely to be matched to high-quality underwriters. In further exploratory analyses, we find the impact is greater for firms with more uncertain language in their written S-1. Taken together, our results provide evidence that investors' instinctive perceptions of management are incorporated into their assessments of firm value.