Investor relations and IPO performance

@article{Chahine2019InvestorRA,
  title={Investor relations and IPO performance},
  author={Salim Chahine and Gonul Colak and Iftekhar Hasan and Mohamad Mazboudi},
  journal={Review of Accounting Studies},
  year={2019},
  volume={25},
  pages={474-512}
}
We analyze the value of investor relations (IR) strategies to IPO firms. We find that firms that are less visible and have inexperienced management tend to hire IR consultants prior to the issue date. IR consultants help create positive news coverage before an IPO, as reflected in a more optimistic tone of published media. Their presence is associated with higher underpricing at the IPO date but with lower long-run returns. IR-backed IPOs also exhibit disproportionately higher insider-related… 

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