The Impact of the Tone of a Prospectus on IPO Underpricing: Evidence from China

被引：4
|
作者：
Qi, Jun [1 ]
Chi, Qinwei [1 ]
Yang, Ni [2 ]
Ouyang, Junyan [3 ]
机构：
[1] Jinan Univ, Sch Management, Guangzhou, Guangdong, Peoples R China
[2] State Adm Taxat, Chengdu Municipal Tax Serv, Chengdu, Peoples R China
[3] Jiangxi Univ Finance & Econ, Sch Business Adm, Nanchang, Peoples R China
来源：
AUSTRALIAN ACCOUNTING REVIEW | 2023年 / 33卷 / 04期
关键词：
INFORMATION-CONTENT; INSTITUTIONAL OWNERSHIP; MANAGERIAL OWNERSHIP; INVESTMENT BANKING; EARNINGS GUIDANCE; TEXTUAL ANALYSIS; SELECTION BIAS; AUDIT QUALITY; CEO DUALITY; MANAGEMENT;
D O I：
10.1111/auar.12412
中图分类号：
F8 [财政、金融];
学科分类号：
0202 ;
摘要：
A prospectus is an essential disclosure document requested by stock market regulators and used by potential investors to acquire necessary information about the fair value estimate of an initial public offering (IPO) and subsequent investment decisions. Using IPO firms in China during the period 2007 to 2017, this study provides novel evidence for the impact of the tone of a prospectus on IPO underpricing. The results show that the tone of a prospectus is positively associated with underpricing. Supplementary analyses show that the positive effect of prospectus tone on IPO underpricing is more pronounced for IPO firms having CEO duality and large board size, lower managerial shareholding and institutional shareholding, and big audit firms and prestigious underwriters. Finally, the results indicate that the positive tone of a prospectus is able to predict negative operating performance in future.
引用
收藏
页码：375 / 390
页数：16
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