Are private placements associated with more active media management than public offerings? Evidence from Taiwan

IF 16.4 1区 化学 Q1 CHEMISTRY, MULTIDISCIPLINARY
Ming-Chang Wang, Yu-Feng Hsu, Hsiang-Ying Chien
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Abstract

PurposeThis study investigates the media activities of firms issuing private equity placements and seasoned equity offerings in Taiwan, as firms have incentives to manage media coverage to influence their stock prices during private equity placement.Design/methodology/approachWe collect a corpus of news stories and transform the news into term sets based on the part of speech. Then, we refer to Cecchini et al. (2010) to classify the news terms into positive, negative, and usual categories. Next, we employ the SVM algorithm to perform the classification tasks and the term frequency method to perform the text mining task. In last, we use a multiple regression model to verify the hypotheses.FindingsWe determine that issuing firms in a private placement have substantially more positive news stories and fewer negative news stories than those in public offerings. Furthermore, we evidence that the media management effects of postequity issues are more active than those of preequity issues. Finally, our results demonstrate that the timing and content of financial media coverage among different equity issuance methods may be biased by firm management. According to previous studies, they may attempt to manipulate stock prices to increase the number of highly profitable insider stakeholders.Originality/valueTo our knowledge, this is the first study to investigate that if private placement will associate with more active media management than the public offerings. According to our results of the difference-in-means test, the public offerings market may control news coverage; however, this result is inconsistent with that of the regression results. The private placements market may also exercise media management in the “before announcement day” and “after announcement day” periods by increasing positive news and reducing negative news.
与公开发行相比,私募与更积极的媒体管理是否相关?来自台湾的证据
目的本研究调查了台湾发行私募股权和成熟股权的公司的媒体活动,因为在私募股权发行过程中,公司有动机管理媒体报道以影响其股票价格。然后,我们参考 Cecchini 等人(2010 年)的研究,将新闻术语分为正面、负面和通常类别。接下来,我们采用 SVM 算法执行分类任务,并采用词频法执行文本挖掘任务。最后,我们使用多元回归模型来验证假设。研究结果我们发现,与公开发行股票相比,私募发行公司的正面新闻报道要多得多,负面新闻报道要少得多。此外,我们还证明,与发行股票前相比,发行股票后的媒体管理效应更为活跃。最后,我们的研究结果表明,在不同的股权发行方式中,财经媒体报道的时间和内容可能会受到公司管理层的影响。据我们所知,这是第一项关于私募发行是否会比公开发行与更活跃的媒体管理相关联的研究。根据我们的均值差异检验结果,公募市场可能会控制新闻报道,但这一结果与回归结果不一致。私募市场在 "公告日之前 "和 "公告日之后 "也可能通过增加正面新闻和减少负面新闻来进行媒体管理。
本文章由计算机程序翻译,如有差异,请以英文原文为准。
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来源期刊
Accounts of Chemical Research
Accounts of Chemical Research 化学-化学综合
CiteScore
31.40
自引率
1.10%
发文量
312
审稿时长
2 months
期刊介绍: Accounts of Chemical Research presents short, concise and critical articles offering easy-to-read overviews of basic research and applications in all areas of chemistry and biochemistry. These short reviews focus on research from the author’s own laboratory and are designed to teach the reader about a research project. In addition, Accounts of Chemical Research publishes commentaries that give an informed opinion on a current research problem. Special Issues online are devoted to a single topic of unusual activity and significance. Accounts of Chemical Research replaces the traditional article abstract with an article "Conspectus." These entries synopsize the research affording the reader a closer look at the content and significance of an article. Through this provision of a more detailed description of the article contents, the Conspectus enhances the article's discoverability by search engines and the exposure for the research.
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