The role of valuation report contents in shaping Post-IPO share price performance

This study explores the effect of information associated with valuation reports before initial public offerings (IPOs) on post-IPO share price performance. Our results provide valuable insights for Türkiye as well as other emerging markets around the world. In addition, the comprehensive data and broad scope of information obtained from the pre-IPO valuation reports amplify the significance of our findings. We conduct a content analysis on 113 valuation reports, developing indexes for each report. Using regression analysis, we examine the impact of these indexes on post-IPO share price performance. Our results reveal the presence of abnormal returns in IPOs, which is consistent the findings in prior literature. Equally important, providing extensive information in valuation reports tends to reduce abnormal returns, whereas increasing the information associated with financials and valuation positively influences these returns. One significant finding is that analyst reputation substantially affects post-IPO share price performance.