THE ASSOCIATION BETWEEN IPO UNDERPRCING AND FINANCIAL NEWS – A SENTIMENT ANALYSIS APPROACH

• Main Authors: Yang, Pi Hua, 楊璧華
• Other Authors: Seng, Jia Lang
• Format: Others
• Language: en_US
• Online Access: http://ndltd.ncl.edu.tw/handle/65249594257008312591

碩士 === 國立政治大學 === 會計研究所 === 103 === This study focuses on the relationship between the sentiment of the media coverage and IPO underpricing based on the IPOs firm listing on TWSE corporations or GTSM corporations. This study investigates whether the media were responsible for the phenomenal rise and fall in the market value of IPO shares from 2010 to 2014. We do not focus on what drives the media coverage of IPO firms, but we focus on the effect of pre-IPO media coverage on the first day's return. Recently, sentiment approach have been a useful tool for extract the text information to the numeral data and would be easy to compare and calculate. To avoid the subjective judgment bias, we use sentiment dictionary-based approach to convert the qualitative news to quantitative measures. This study uses the positive and negative words to calculate positive sentiment score of the media, and use the positive and negative words to classify the news items into positive or negative news. In summary, this positive sentiment of media is significantly related to initial return (IPO underpricing), and this study also indicates a significantly result that initial return is highly related to market return than sentiment of media in non-electronics industry. However, as our expected, the number of positive (negative) news reports has a positive (negative) influence on the initial return, in the electronics industry.