Abstract
IPO roadshow meetings facilitate investor learning. Exploiting weather-induced shocks to IPO roadshow interactions, we provide evidence that roadshow disruptions not only negatively affect investor participation, but also reduce ownership breadth and equity prices, both in the IPO period and during the subsequent year. These effects are strongest for issuers with low institutional backing and generate a multi-year path dependency whereby roadshow disruptions lead to less liquidity, equity financing, and capital expenditures. These long-run benefits to IPO roadshow participation highlight a new and important channel through which IPO issuers benefit from roadshows when transitioning to public ownership.
Emily Kim
Assistant Professor of Finance
My research interests cover a variety of topics on empirical corporate finance including information dissemination, innovation, initial public offerings, social finance, and labor economics.