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Corporate governance and IPO underpricing in a cross-national sample: A multilevel knowledge-based view

Author

Listed:
  • William Q. Judge
  • Michael A. Witt
  • Alessandro Zattoni
  • Till Talaulicar
  • Jean Jinghan Chen
  • Krista Lewellyn
  • Helen Wei Hu
  • Dhirendra Shukla
  • R. Greg Bell (Robert)
  • Jonas Gabrielsson
  • Felix Lopez
  • Sibel Yamak
  • Yves Fassin
  • Daniel McCarthy
  • Jose Luis Rivas
  • Stav Fainshmidt
  • Hans Van Ees

Abstract

type="main" xml:id="smj2275-abs-0001"> Prior studies of IPO underpricing, mostly using agency theory and single-country samples, have generally fallen short. In this study, we employ the knowledge-based view (KBV) to explore underpricing across 17 countries. We find that agency indicators are insignificant predictors, board of director knowledge limits underpricing, and external knowledge both substitutes for and complements internal board knowledge. This third finding suggests that future KBV studies should consider how internal and external knowledge states interact with each other. Our study offers new insights into the antecedents of underpricing and extends our understanding of comparative governance and the KBV of the firm. Copyright © 2014 John Wiley & Sons, Ltd.

Suggested Citation

  • William Q. Judge & Michael A. Witt & Alessandro Zattoni & Till Talaulicar & Jean Jinghan Chen & Krista Lewellyn & Helen Wei Hu & Dhirendra Shukla & R. Greg Bell (Robert) & Jonas Gabrielsson & Felix Lo, 2015. "Corporate governance and IPO underpricing in a cross-national sample: A multilevel knowledge-based view," Strategic Management Journal, Wiley Blackwell, vol. 36(8), pages 1174-1185, August.
  • Handle: RePEc:bla:stratm:v:36:y:2015:i:8:p:1174-1185
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    References listed on IDEAS

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    Cited by:

    1. Andrea Signori & Silvio Vismara, 2017. "Stock-financed M&As of newly listed firms," Small Business Economics, Springer, vol. 48(1), pages 115-134, January.
    2. Richard A. Bettis & Constance E. Helfat & J. Myles Shaver & U. David Park & Abhishek Borah & Suresh Kotha, 2016. "Signaling revisited: The use of signals in the market for IPOs," Strategic Management Journal, Wiley Blackwell, vol. 37(11), pages 2362-2377, November.
    3. repec:eee:worbus:v:53:y:2018:i:2:p:118-133 is not listed on IDEAS
    4. repec:eee:worbus:v:52:y:2017:i:5:p:628-639 is not listed on IDEAS
    5. repec:eee:tefoso:v:127:y:2018:i:c:p:141-153 is not listed on IDEAS
    6. repec:pal:jintbs:v:48:y:2017:i:6:d:10.1057_s41267-016-0054-8 is not listed on IDEAS

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