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Does market sentiment affect IPO pricing

Cynthia J. Campbell et al.

International Journal of Behavioural Accounting and Finance2024https://doi.org/10.1504/ijbaf.2024.139370article
ABDC C
Weight
0.30

What the paper says

Sentiment has been proposed as one of many possible explanations for initial public offering (IPO) underpricing. In this paper, we explore the role of market wide sentiment in IPO pricing before the start of secondary market trading. We find that the IPO initial filing price multiples are higher when the level of sentiment is higher. Interestingly, the level of sentiment does not appear to affect the IPO final offer price multiples. Instead, changes in sentiment have a significant impact on the final offer price multiples. Additionally, we find that underwriters with a higher reputation tend to incorporate the change in sentiment more aggressively than underwriters with a lower reputation.

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Cite this paper

https://doi.org/https://doi.org/10.1504/ijbaf.2024.139370

Or copy a formatted citation

@article{cynthia2024,
  title        = {{Does market sentiment affect IPO pricing}},
  author       = {Cynthia J. Campbell et al.},
  journal      = {International Journal of Behavioural Accounting and Finance},
  year         = {2024},
  doi          = {https://doi.org/https://doi.org/10.1504/ijbaf.2024.139370},
}

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Does market sentiment affect IPO pricing

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Evidence weight

0.30

Balanced mode · F 0.40 / M 0.15 / V 0.05 / R 0.40

F · citation impact0.00 × 0.4 = 0.00
M · momentum0.50 × 0.15 = 0.07
V · venue signal0.50 × 0.05 = 0.03
R · text relevance †0.50 × 0.4 = 0.20

† Text relevance is estimated at 0.50 on the detail page — for your query’s actual relevance score, open this paper from a search result.