Media coverage and biotechnology IPOs: Some Australian evidence

Paul Jens
Robert Brooks
Gina Nicoletti
Roslyn Russell

DOI:https://doi.org/10.5912/jcb186

Abstract:

This paper analyses Australian biotechnology initial public offerings and the role of media coverage during the issue period in explaining capital raising, sentiment and underpricing. This paper finds empirical support for the hypothesis that an issuing company that receives more press coverage during the listing process leaves significantly more money on the table than those who receive less coverage, a finding consistent with the presence of sentiment effects and hot issue periods.

Keywords:initial public offering ,media ,market sentiment ,en ,