THE ROLE OF THE MEDIA IN THE INTERNET IPO BUBBLE
The first part of this paper explores whether media coverage was different for internet IPOs as opposed to a matching sample of non-internet IPOs in the late 1990s. So we read all news items that came out between 1996 through 2000 on 458 internet IPOs and a matching sample of 458 non-internet IPOs – a total of 171,488 news items -- and classify each news item as good news, neutral news or bad news. We find, not surprisingly, that the media coverage was more intense for internet IPOs. Further, we document that the media hyped the good news for internet IPOs in the bubble period and hyped the bad news for internet IPOs in the post-bubble period. The second part of the paper explores whether this differential media coverage affected risk-adjusted returns. We find, surprisingly, that the market somewhat discounted the media hype: though net news (number of good news minus number of bad news) Granger caused risk-adjusted returns for both types of IPOs, the effect was lower for internet IPOs, especially in the bubble period.
initial public offerings media internet bubbles
Utpal Bhattacharya Neal Galpin Rina Ray Xiaoyun Yu
Kelley School of Business Indiana University
国际会议
昆明
英文
2005-07-05（万方平台首次上网日期，不代表论文的发表时间）