A Study On The Impact Of Media Coverage On IPO Pricing Effciency

Media coverage plays an important role in the stock market,nowadays,media organizations have become an important force that can not be ignored.As the carrier of social information dissemination,the media bear the responsibility of information dissemination and public opinion supervision in the social public affairs.By attracting people's limited attention,influencing investor sentiment,affecting asset price movements and trading activity,Media reports help investors form a value judgment and thus affect investor decision-making.Meanwhile,the media can use the communication platform for information dissemination,effectively weaken the information asymmetry,improve the efficiency of market information.In China's securities market,rational investors take up less percentage,it is prone to appear "herd effect" and "follow the trend effect".In terms of our country,is there any media effect in IPO market,How media reports affect the efficiency of IPO pricing,Is there a difference in the impact of different types of media reports on the IPO market,This series of questions are in urgent needed to answer.First of all,this paper reviews the existing literature on the impact of media reports on IPO pricing efficiency,and explores a new perspective on the basis of previous studies.Then the paper analyzes the influence of media reports on IPO pricing efficiency and selects the factors that affect IPO pricing efficiency,which lays the theoretical foundation for the empirical analysis.This paper explores the influence of media reports on the efficiency of IPO pricing from different perspectives and further analyzes its impact mechanis.This paper selects the sample of Shanghai and Shenzhen IPO company since the IPO restart in 2014,constructs the regression model,and systematically studies the impact of different types of media reports on the IPO pricing,IPO underpricing rate and its transmission path.Empirical results found : First of all,different types of media in the governance effect have significant differences,guided media coverage can curb issuers to reduce the stock issue pricing by gaining excess funds,collusion with the underwriters to manipulate the share price,and grab the investor's interest;Network media reports help to raise the company to issue pricing,access to excess funds,the number of network media reports more,the higher the turnover,the higher the investor sentiment,the corresponding IPO underpricing rate higher.Secondly,this paper uses the mediating effect model to verify the emotional path of investor sentiment in the network media coverage and IPO underpricing,which take part in the role of intermediary.In the path that the media reports affect the IPO underpricing rate,the mediating effect does not exist,which indicates that the information function of the guided media is diluted by massive network media reports,the degree of rationality of the investors in the secondary market is limited,and the emotional effect is remarkable.Network media coverage through the investor sentiment path affects the underpricing rate,thus affecting the efficiency of IPO pricing.The possible innovations of this paper are: first of all,taking into account the differences in media influence,the media is divided into network media and oriented media,this paper studies the differences in the effect of different types of media on IPO pricing efficiency.Secondly,through the intermediary effect model,it confirms the action path of media coverage affecting IPO underpricing rate through investor sentiment,which provides empirical evidence for media reporting on the inherent mechanism of IPO pricing efficiency,it is conducive to enrich and improve the media governance effect of the relevant research.