Media coverage and IPO pricing around the World

Yangyang Chen, Abhinav Goyal, Madhu Veeraraghavan, Leon Zolotoy*

*Corresponding author for this work

Research output: Contribution to journalArticlepeer-review

24 Citations (Scopus)


We study how media coverage impacts pricing of initial public offerings (IPOs) around the world. Higher media coverage in the pre-IPO period leads to lower IPO initial returns. The effect is mitigated in countries with better financial reporting quality, greater shareholder rights protection, and more stringent media censorship, and for IPOs certified by reputable intermediaries, while it is amplified in countries with higher levels of media penetration and media trust. Further, IPOs with higher pre-IPO media coverage have lower ex post price revision volatility. Our findings suggest that higher pre-IPO media coverage reduces information asymmetry among investors, leading to less underpriced IPOs.

Original languageEnglish
Pages (from-to)1515-1553
Number of pages39
JournalJournal of Financial and Quantitative Analysis
Issue number5
Publication statusPublished - 1 Aug 2020

Bibliographical note

Publisher Copyright:
Copyright © 2019 Michael G. Foster School of Business, University of Washington.

ASJC Scopus subject areas

  • Accounting
  • Finance
  • Economics and Econometrics


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