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A Peer-reviewed scientific articles/A1 Journal article (refereed), original research
      
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Investor relations and IPO performance, Review of Accounting Studies 2 ; June (2020). Chahine, Salim; Colak, Gonul; Hasan, Iftekhar; Mazboudi, Mohamad


Category A Peer-reviewed scientific articles
Sub-category A1 Journal article (refereed), original research
auki Internal authors
All authors as text Chahine, Salim; Colak, Gonul; Hasan, Iftekhar; Mazboudi, Mohamad 
Number of authors
Status Published
Year of publication 2020 
Date 17.04.2020 
Name of article Investor relations and IPO performance 
Name of journal Review of Accounting Studies
Volume of issue 25 
Number of issue 2 ; June 
Pages 474-512 
Abstract We analyze the value of investor relations (IR) strategies to IPO firms. We find that firms that are less visible and have inexperienced management tend to hire IR consultants prior to the issue date. IR consultants help create positive news coverage before an IPO, as reflected in a more optimistic tone of published media. Their presence is associated with higher underpricing at the IPO date but with lower long-run returns. IR-backed IPOs also exhibit disproportionately higher insider-related agency problems, as IR-induced higher underpricing tends to occur primarily in IPOs where underwriter and venture capitalist agency conflicts are more severe. These findings suggest that the IR programs of IPO firm are mostly short-term oriented and facilitate the ulterior motives of some insiders (underwriters and venture capitalists) targeting higher first-day returns.
Free text descriptor in Finnish IPO; yritykset; sijoittajat; suhteet; rahoitus 
Free text descriptor in English Agency problems, Analyst forecasts, Initial public offering, Investor relations, Media, Underwriters, Venture capitalists 
ISSN / e-ISSN 1573-7136 
auki Internet addresses
Open Access Not known