MARKETING STRATEGY AFTER MEETING WALL STREET: THE ROLE OF INFORMATION ASYMMETRY

摘要

We relate marketing strategy to the initial public offering (IPO) process during 1980— 2010. Pre-IPO marketing intensity provides information to the market, which reduces underpricing and the magnitude of price revisions during the filing period. Firms that experience upward (downward) price revisions spend more (less) on marketing in the five years post-IPO. We confirm that marketing spending is related to a firm's informational environment by finding a positive relation between marketing intensity and firm information transparency post-IPO. This finding indicates that marketing spending is one channel through which a firm affects its perception by the public equity market at issuance and later.