The Weinberg Center congratulates He Gao, Assistant Professor, Business Administration, on her latest publication in the Journal of Business Venturing Insights.
Her research and latest paper sheds light on how imagery-rich language in IPO prospectuses influences investor perception—and what that means for firm performance.
For new ventures, an IPO is a defining moment. To attract investors, firms often craft their messaging to appear as positive and persuasive as possible. But does this stylistic language reflect true potential—or just temporary hype?
Prof. Gao’s study examines the effects of linguistic strategies in IPO filings on both:
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Short-term IPO performance
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Post-IPO firm growth
Key Findings:
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Imagery language generates greater investor enthusiasm, leading to higher IPO underpricing
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However, it correlates with lower post-IPO growth, suggesting that early excitement may not signal lasting success
The study highlights the importance of critically evaluating rhetoric vs. reality in IPO materials—and offers new insights into how language shapes investment outcomes.
About Gao
Prof. Gao holds a Ph.D. in Strategic Management from Arizona State University. Her research focuses on competitive dynamics, strategic leadership, and the use of language by top executives to influence key stakeholders and rivals.
Her work has been published in leading journals, including:
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Academy of Management Review
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Journal of Management
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Journal of Applied Psychology
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Academy of Management Best Paper Proceedings
Before joining the University of Delaware, she served on the faculty at Michigan State University.