Can management tone predict IPO performance? – Evidence from mandatory online roadshows in China

Shibo Bian, Dekui Jia, Ruihai Li, Wujun Sun, Zhipeng Yan, Yingfei Zheng

Research output: Contribution to journalArticlepeer-review

Abstract

In this study, we investigate the relation between the sentiment of online roadshow texts and IPO first-day returns as well as post-IPO operating performancein China's stock market. Our results suggest that a higher positive tone in management's responses and comments during online roadshows is significantly associated with greater first-day returns. The results also show that the management tone is significantly and positively related to post-IPO operating performance. Our study indicates that the tone of online roadshows is informative and its information content has important implications for understanding IPO first-day returns and future operating performance in China's stock market.

Original languageEnglish (US)
Article number101588
JournalPacific Basin Finance Journal
Volume68
DOIs
StatePublished - Sep 2021

All Science Journal Classification (ASJC) codes

  • Finance
  • Economics and Econometrics

Keywords

  • First-day returns
  • Management tone
  • Online roadshow
  • Post-IPO operating performance
  • Textual analysis

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