A Textual Analysis of Logograms in Chinese IPO Roadshows: How Agreement between Investors and Management Relates to Pricing and Performance

We analyze the interaction between management and investors during Chinese IPO roadshows through Jaccard Similarity analysis of written logograms. provide evidence that when agreement is high, investor optimism increases, leading to relatively large first-day underpricing. further show high biases systematically overestimate prospects poor long-run abnormal performance. different from current content methodologies because it language culture agnostic, requiring no a priori construction thematic dictionaries. Elimination such dictionaries removes danger researcher has imposed predispositions upon study.