News Media Coverage and Initial Public Offerings in Germany: Explaining Flotation Performance

• In Event: Media: Market, Ecology, System

Abstract

This study investigates the influence of media coverage on the performance of initial public offerings in Germany. Advancing previous research, analyses did not only include media attention and media sentiment, but also corporate information released with regard to the 50 IPOs that went public in Germany between January 2011 and December 2015. The main findings point to a negative relationship between negative sentiment in the media coverage and the flotation performance of IPOs as well as a negative relationship between the presence of information on new products of IPOs and the win of the share price after the second day of trading. These relationships were particularly present when considering media coverage on the day of the IPO itself, instead of coverage from six days prior to the IPO date.

Authors

• Nadine Strauss, U of Amsterdam

• Toni G.L.A. van der Meer, U of Amsterdam