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Strategic and institutional effects on foreign IPO performance: Examining the impact of country of origin, corporate governance, and host country effects

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  • Bell, R. Greg
  • Moore, Curt B.
  • Filatotchev, Igor
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    Abstract

    Integrating signaling and institutional perspectives, we develop and test hypotheses relating institutions and corporate governance to foreign IPO success. Our investigation highlights the importance of three important drivers of foreign IPO success: home country legal institutions, corporate governance, and host capital market choice. This research demonstrates that board independence and country of origin effects are powerful signals. However, these factors do not have a universal impact on foreign IPO success. Instead, the value of home country institutions along with corporate governance signals are contingent upon the institutional environment in which international entrepreneurs choose to seek capital resources.

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    Bibliographic Info

    Article provided by Elsevier in its journal Journal of Business Venturing.

    Volume (Year): 27 (2012)
    Issue (Month): 2 ()
    Pages: 197-216

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    Handle: RePEc:eee:jbvent:v:27:y:2012:i:2:p:197-216

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    Web page: http://www.elsevier.com/locate/jbusvent

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    Keywords: IPO; Corporate governance; Signaling theory; Institutional theory;

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    Cited by:
    1. LiPuma, Joseph A., 2012. "Internationalization and the IPO performance of new ventures," Journal of Business Research, Elsevier, Elsevier, vol. 65(7), pages 914-921.

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