IDEAS home Printed from https://ideas.repec.org/a/taf/jbemgt/v14y2013i1p156-181.html
   My bibliography  Save this article

Legitimacy signals and family IPO performances

Author

Listed:
  • Hung-bin Ding
  • Kuntara Pukthuanthong

Abstract

The objective of this research is to examine the relationship between signals including governance and management practices and the performance of family firms IPOs. Using IPO data of 129 family firms and 129 comparable non-family firms from the Taiwan Stock Exchange, our findings highlighted the role of non-family insiders, or non-family affiliated directors in the IPOs of family firms. Our comparison between family and non-family IPOs shows hiring prestigious underwriters significantly improves the performance of family firm IPOs. Finally, we found the industries of IPO firms moderate the relationship between corporate governance characteristics and IPO performances, as non-family firms in technology industries are perceived to be more legitimate than their family counterparts. This paper makes three contributions to existing research. Firstly, we contribute to the legitimacy theory by suggesting an interaction effect between internal (organizational) and external (environmental) factors. Secondly, our analysis highlighted the roles of affiliated directors and industry in the performances of public family firms. Thirdly, this study contributes to the family business research by underscoring the differences between family and non-family firms in the IPO context.

Suggested Citation

  • Hung-bin Ding & Kuntara Pukthuanthong, 2013. "Legitimacy signals and family IPO performances," Journal of Business Economics and Management, Taylor & Francis Journals, vol. 14(1), pages 156-181, February.
    • Handle: RePEc:taf:jbemgt:v:14:y:2013:i:1:p:156-181
    DOI: 10.3846/16111699.2012.711359
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.3846/16111699.2012.711359
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: https://libkey.io/10.3846/16111699.2012.711359?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. International Finance Corporation & OECD, 2009. "Practical Guide to Corporate Governance," World Bank Publications - Reports 28085, The World Bank Group.
    2. D. Alba, Joseph & Park, Donghyun & Wang, Peiming, 2010. "Corporate Governance and Foreign Direct Investment," ADB Economics Working Paper Series 202, Asian Development Bank.
    3. Sarchizian Sergiu, 2010. "International Corporate Governance in Globalisation Context," Ovidius University Annals, Economic Sciences Series, Ovidius University of Constantza, Faculty of Economic Sciences, vol. 0(2), pages 705-708, October.
    4. E. Han Kim & Woochan Kim, 2008. "Changes in Korean Corporate Governance: A Response to Crisis," Journal of Applied Corporate Finance, Morgan Stanley, vol. 20(1), pages 47-58, December.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Fabrizio Zerbini, 2017. "CSR Initiatives as Market Signals: A Review and Research Agenda," Journal of Business Ethics, Springer, vol. 146(1), pages 1-23, November.
    2. Carbone, Emmadonata & Cirillo, Alessandro & Saggese, Sara & Sarto, Fabrizia, 2022. "IPO in family business: A systematic review and directions for future research," Journal of Family Business Strategy, Elsevier, vol. 13(1).
    3. Zattoni, Alessandro & Witt, Michael A. & Judge, William Q. & Talaulicar, Till & Chen, Jean Jinghan & Lewellyn, Krista & Hu, Helen Wei & Gabrielsson, Jonas & Rivas, Jose Luis & Puffer, Sheila & Shukla,, 2017. "Does board independence influence financial performance in IPO firms? The moderating role of the national business system," Journal of World Business, Elsevier, vol. 52(5), pages 628-639.
    4. Hanqing “Chevy” Fang & Kulraj Singh & Taewoo Kim & Laura Marler & James J. Chrisman, 2022. "Family business research in Asia: review and future directions," Asia Pacific Journal of Management, Springer, vol. 39(4), pages 1215-1256, December.
    5. Emmadonata Carbone & Riccardo Vigano, 2023. "IPO Timing in Family and Non-Family Firms: Investigating the CEO’s Characteristics Role," International Journal of Business and Management, Canadian Center of Science and Education, vol. 18(3), pages 1-78, June.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Min Park, 2021. "Unionized employees’ influence on executive compensation: Evidence from Korea," British Journal of Industrial Relations, London School of Economics, vol. 59(4), pages 1049-1083, December.
    2. Sanghoon Lee, 2008. "Ownership Structure and Financial Performance: Evidence from Panel Data of South Korea," Working Paper Series, Department of Economics, University of Utah 2008_17, University of Utah, Department of Economics.
    3. Peter J. Baldacchino & Norbert Tabone & Janice Camilleri & Simon Grima, 2020. "An Analysis of the Board of Directors Composition: The Case of Maltese Listed Companies," International Journal of Finance, Insurance and Risk Management, International Journal of Finance, Insurance and Risk Management, vol. 10(1), pages 25-44.
    4. Alexander Maune, 2015. "Corporate Governance in Zimbabwe: An Overview of Its Current State," Asian Economic and Financial Review, Asian Economic and Social Society, vol. 5(1), pages 167-178, January.
    5. James Bohn, 2021. "Déjà vu All Over Again? Learning from Nonfinancial Business Credit Booms and Busts of the Past," Supervisory Research and Analysis Notes, Federal Reserve Bank of Boston, issue 2021-04, pages 1-32, August.
    6. Jung-Wook Kim & Jason Lee & Randall Morck, 2009. "Characteristics of Observed Limit Order Demand and Supply Schedules for Individual Stocks," NBER Working Papers 14733, National Bureau of Economic Research, Inc.
    7. Azzouzi Asmae & Bousselhami Ahmed, 2019. "Impact of the Exchange Rate and Price Volatility on FDI Inflows: Case of Morocco and Turkey," Applied Economics and Finance, Redfame publishing, vol. 6(3), pages 87-104, May.
    8. Simmons, Geoff & Giraldo, Jorge Esteban Diez & Truong, Yann & Palmer, Mark, 2018. "Uncovering the link between governance as an innovation process and socio-economic regime transition in cities," Research Policy, Elsevier, vol. 47(1), pages 241-251.
    9. Jian Chen & Roger Strange, 2012. "Political economy of IPO underpricing: the evidence from China," Journal of Chinese Economic and Business Studies, Taylor & Francis Journals, vol. 10(2), pages 111-129, January.
    10. Gulamhussen, Mohamed Azzim & Santa, Sílvia Fonte, 2015. "Female directors in bank boardrooms and their influence on performance and risk-taking," Global Finance Journal, Elsevier, vol. 28(C), pages 10-23.
    11. Adam Samborski, 2011. "Financial crisis and corporate governance (Kryzys finansowy a nadzor korporacyjny)," Problemy Zarzadzania, University of Warsaw, Faculty of Management, vol. 9(31), pages 233-256.
    12. Jae Eun Shin & Seung-Weon Yoo & Gun Lee, 2020. "The Effects of Blockholder Dispersion on the Informativeness of Earnings: Evidence from Korea," Sustainability, MDPI, vol. 12(22), pages 1-18, November.
    13. Bereskin, Frederick L. & Kim, Bushik & Oh, Frederick Dongchuhl, 2015. "Do credit rating concerns lead to better corporate governance? Evidence from Korea," Pacific-Basin Finance Journal, Elsevier, vol. 35(PB), pages 592-608.
    14. Assaf Hamdani & Konstantin Kosenko & Yishay Yafeh, 2021. "Regulatory Measures to Dismantle Pyramidal Business Groups: Evidence from the United States, Japan, Korea, and Israel," Journal of Law, Finance, and Accounting, now publishers, vol. 6(2), pages 221-261, November.
    15. De Regge, Melissa & Eeckloo, Kristof, 2020. "Balancing hospital governance: A systematic review of 15 years of empirical research," Social Science & Medicine, Elsevier, vol. 262(C).
    16. Kim, Rebecca Chunghee & Yoo, Kate Inyoung & Uddin, Helal, 2018. "The Korean Air nut rage scandal: Domestic versus international responses to a viral incident," Business Horizons, Elsevier, vol. 61(4), pages 533-544.
    17. Shirley J. Daniel & Joshua K. Cieslewicz & Thomas C. Pearson, 2011. "State Regulation's Significant Impact on Corporate Governance Practices, Earnings Management, and Disclosure," Asia-Pacific Journal of Accounting & Economics, Taylor & Francis Journals, vol. 18(2), pages 105-124.
    18. Abdul Aziz Khan Niazi & Tehmina Fiaz Qazi & Abdul Basit, 2019. "An Interpretive Structural Model of Barriers in Implementing Corporate Governance (CG) in Pakistan," Global Regional Review, Humanity Only, vol. 4(1), pages 359-375, March.
    19. Griffiths, Kathleen & Kopanidis, Foula & Steel, Marion, 2018. "Investigating the value of a peer-to-peer mentoring experience," Australasian marketing journal, Elsevier, vol. 26(2), pages 92-98.
    20. Kasekende, Elizabeth & Abuka, Charles & Sarr, Mare, 2016. "Extractive industries and corruption: Investigating the effectiveness of EITI as a scrutiny mechanism," Resources Policy, Elsevier, vol. 48(C), pages 117-128.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:taf:jbemgt:v:14:y:2013:i:1:p:156-181. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Chris Longhurst (email available below). General contact details of provider: http://www.tandfonline.com/TBEM20 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.