Media exposure and underpricing : IPO underpricing and media coverage in the time prior to and after going public

摘要

I examine the relationship between IPO underpricing and media exposure, using a sample of54 IPOs launched on the Oslo Stock Exchange in the period of 2003-2006. I use the A-tekstdatabase to measure media exposure, using four observation periods relative to the IPO. Thefindings show that there is a negative relationship between underpricing and media coveragein the IPO subscription period. Furthermore, I show that underpricing increases publicity inthe time after the listing. However, the study fails to find any significant relationshipbetween underpricing and media coverage in the week prior to going public.