The content analysis of price determination reports in Borsa Istanbul between 2013 and 2021

In Türkiye, valuation reports (price determination reports) are prepared by intermediary institutions before initial public offerings. Valuation reports include information about the company, information about the sector in which the company operates, the company's financials and financial analysis, and company valuation. These reports are prepared in accordance with international valuation standards. The valuation reports are audited and authorized by the public authorities CMB and BIST. The scope and content of valuation reports prepared before initial public offerings are important for the development, efficiency, and transparency of capital markets. The level of relevant information included in these reports contributes to reducing the information asymmetry between company owners, intermediary institutions, and investors participating in the public offering. In the finance literature, studies show that the reports prepared by intermediary institution analysts are taken into consideration by investors and that there is a relationship between the content of the reports, writing tone, informativeness and investor behavior, abnormal returns, and share price volatility. Within the scope of the research, the scope of valuation reports prepared for initial public offerings between 2013 and 2021, the relationship between the scope of the reports and the abnormal returns, the relationship between the scope of the reports and the share price volatility analyzed by regression models. The study shows that significant coverage deficiencies in valuation reports, and these deficiencies cause information asymmetry between company owners, intermediary institutions, and investors. In addition, as the level of relevant information provided in valuation reports increases, abnormal returns, and volatility decreases. The results show that the increase in the relevant information level of the reports contributes to accurate information for investors, reduces information asymmetry, and efficient pricing.