Pre-IPO Analyst Coverage in the Chinese IPO Market

DOI

10.2991/aebmr.k.201211.090How to use a DOI?

Keywords

Initial public offering (IPO), analyst coverage, post-IPO performance

Abstract

Inspired by the literature about analysts, I study whether analysts are information producers or IPO hypers. Empirical results show that more analyst coverages are related to higher post-IPO ROE and ROA, indicating that analysts tend to issue more coverages about IPOs with higher quality. Moreover, I find that market reaction is consistent with operating performance results since IPOs with more analysts coverages have better stock performance in the secondary market. Overall, the results support and highlight the information role of analysts. Also, the secondary market understands the effect of analysts and reflects IPO quality into returns.

Copyright

© 2020, the Authors. Published by Atlantis Press.

Open Access

This is an open access article distributed under the CC BY-NC license (http://creativecommons.org/licenses/by-nc/4.0/).

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TY  - CONF
AU  - Xinru Ma
PY  - 2020
DA  - 2020/12/14
TI  - Pre-IPO Analyst Coverage in the Chinese IPO Market
BT  - Proceedings of the Fifth International Conference on Economic and Business Management (FEBM 2020)
PB  - Atlantis Press
SP  - 532
EP  - 536
SN  - 2352-5428
UR  - https://doi.org/10.2991/aebmr.k.201211.090
DO  - 10.2991/aebmr.k.201211.090
ID  - Ma2020
ER  -