Eres : Digital Library : Works

Paper eres2014_13:
Textual Analysis of REIT IPO Prospectuses: Quantifying Company Rhetoric as an Indicator of Underpricing

id eres2014_13
authors Radner, Philip
year 2014
title Textual Analysis of REIT IPO Prospectuses: Quantifying Company Rhetoric as an Indicator of Underpricing
source 21st Annual European Real Estate Society Conference in Bucharest, Romania
summary This paper analyzes the influence of information disclosure in the REIT IPO prospectus on IPO underpricing. It introduces a different approach for measuring information disclosure and then quantifies its effect on initial returns. The IPO prospectuses of 72 REIT companies are analyzed on key words and then tested on abnormal return patterns with regard to the frequent use of these key words. Moreover, future tense is taken as a proxy for the number of promises in an IPO prospectus and the paper tests a risk-based interpretation. Firms that make fewer promises put less information in the marketplace. Consequently, investors should be rewarded for having less information to correctly value the issue by underpricing. Generally, the paper analyzes the impact of the IPO prospectus on underpricing and examines the relationship between the use of key words as well as promises made by a firm in its IPO prospectus and its underpricing level.
series ERES:conference
email philip.radner@ebs.edu
more http://library.eres.org/cgi-bin/rsa98.pl?conf=ERES2014&type=session&theme=PHC&slot=2523
discussion No discussions. Post discussion ...
ratings
session PHC: Doctoral Session
last changed 2014/10/21 21:51
HOMELOGIN (you are user _anon_944129 from group guest) Powered by SciX Open Publishing Services 1.002