Title: Perceptions and Price: Evidence from CEO Presentations at IPO Roadshows
Abstract: Journal of Accounting ResearchVolume 55, Issue 2 p. 275-327 Original Article Perceptions and Price: Evidence from CEO Presentations at IPO Roadshows ELIZABETH BLANKESPOOR, ELIZABETH BLANKESPOOR Graduate School of Business, Stanford UniversitySearch for more papers by this authorBRADLEY E. HENDRICKS, BRADLEY E. HENDRICKS Kenan-Flagler Business School, University of North Carolina at Chapel HillSearch for more papers by this authorGREGORY S. MILLER, GREGORY S. MILLER Stephen M. Ross School of Business, University of MichiganSearch for more papers by this author ELIZABETH BLANKESPOOR, ELIZABETH BLANKESPOOR Graduate School of Business, Stanford UniversitySearch for more papers by this authorBRADLEY E. HENDRICKS, BRADLEY E. HENDRICKS Kenan-Flagler Business School, University of North Carolina at Chapel HillSearch for more papers by this authorGREGORY S. MILLER, GREGORY S. MILLER Stephen M. Ross School of Business, University of MichiganSearch for more papers by this author First published: 23 January 2017 https://doi.org/10.1111/1475-679X.12164Citations: 98 Accepted by Philip Berger. We thank Bill Baber, Mary Barth, Camelia Kuhnen, Bob Libby, Bill Mayew, Eddie Riedl, Mohan Venkatachalam, two anonymous reviewers, and workshop participants at the 2014 Duke/UNC Fall Camp, Georgetown University, the 2016 Journal of Accounting Research conference, London Business School, MIT Sloan School of Management, the 2015 Penn State Accounting Conference, Temple University, the University of Arizona, the 2015 University of Colorado Accounting Conference, the University of Southern California, Vanderbilt University, and the Victor L. Bernard Memorial Conference for helpful suggestions. We also thank Mae Bethel, Carlie Cunningham, Christina Maimone, and Alex Storer for excellent research assistance; Michael Haupt, Schinria Islam, and the Stanford Graduate School of Business Behavioral Lab for support with survey creation and administration; and Jay Ritter for providing the Carter-Manaster rankings and each IPO firm's founding date on his Web site. Blankespoor ([email protected]) received financial support from the Michelle R. Clayman Faculty Fellowship, Hendricks ([email protected]) from the Kenan-Flagler Business School and the Deloitte Foundation, and Miller ([email protected]) from the Michael R. and Mary Kay Hallman Fellowship and Ernst and Young. Read the full textAboutPDF ToolsRequest permissionExport citationAdd to favoritesTrack citation ShareShare Give accessShare full text accessShare full-text accessPlease review our Terms and Conditions of Use and check box below to share full-text version of article.I have read and accept the Wiley Online Library Terms and Conditions of UseShareable LinkUse the link below to share a full-text version of this article with your friends and colleagues. Learn more.Copy URL Share a linkShare onFacebookTwitterLinkedInRedditWechat ABSTRACT This paper examines the relation between cognitive perceptions of management and firm valuation. We develop a composite measure of investor perception using 30-second content-filtered video clips of initial public offering (IPO) roadshow presentations. We show that this measure, designed to capture viewers’ overall perceptions of a CEO, is positively associated with pricing at all stages of the IPO (proposed price, offer price, and end of first day of trading). The result is robust to controls for traditional determinants of firm value. We also show that firms with highly perceived management are more likely to be matched to high-quality underwriters. In further exploratory analyses, we find the impact is greater for firms with more uncertain language in their written S-1. Taken together, our results provide evidence that investors’ instinctive perceptions of management are incorporated into their assessments of firm value. Citing Literature Volume55, Issue2May 2017Pages 275-327 RelatedInformation
Publication Year: 2017
Publication Date: 2017-02-20
Language: en
Type: article
Indexed In: ['crossref']
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Cited By Count: 159
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