Does management tone matter in information disclosure? Evidence from IPO online roadshows in the SSE STAR market

Shengpeng Zhang, Yaokuang Li, Ruixin Liang and Yu He

International Review of Financial Analysis, 2024, vol. 94, issue C

Abstract: This paper explores whether management tone in IPO online roadshows in the SSE STAR Market matters in information disclosure. We apply bag-of-words and machine learning methods to construct proxies for management tone, respectively. After conducting a series of empirical analyses, we find that management tone is positively associated with first-day stock returns and future operating performance after IPO. In additional analyses, we provide evidence that the information role played by management tone is transitory and that stock price reversals exist. Then, we document that investor sentiment has a mediating effect on the relationship between management tone and first-day stock returns after IPO. Finally, we demonstrate that compared with forward-looking statements, historical statements in management response texts provide more valuable information. Our research findings confirm that the management tone in IPO online roadshows plays an important information role, despite dramatic changes in information disclosure and stock offering systems in the SSE STAR Market.

Keywords: Management tone; IPO online roadshows; Information disclosure; SSE STAR market (search for similar items in EconPapers)
JEL-codes: G14 G15 G32 G41 M41 M48 (search for similar items in EconPapers)
Date: 2024
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:finana:v:94:y:2024:i:c:s1057521924002394

DOI: 10.1016/j.irfa.2024.103307

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