Foreign IPOs in the U.S.: When entrepreneurial orientation meets institutional distance

Kun Liu, Jintong Tang, Yang, Kun (Michelle) and Jonathan Arthurs

Journal of Business Research, 2019, vol. 101, issue C, 144-151

Abstract: An increasing number of foreign firms are seeking capital in foreign countries via IPO listings. While much research has discussed the effects of external institutions, few research studies have systematically analyzed how institutional factors, as well as firm-specific characteristics such as entrepreneurial orientation (EO), jointly determine the performance of foreign IPOs. We suggest that a larger administrative distance negatively affects IPO performance, whereas EO positively affects IPO performance. At the same time, administrative distance negatively moderates the effects of EO on IPO performance. Findings from a sample of foreign firms that went public on the U.S. stock market between 2002 and 2012 support our hypotheses. The implications of these findings are discussed in this paper.

Keywords: IPOs; Institutional distance; Entrepreneurial orientation; Administrative distance (search for similar items in EconPapers)
Date: 2019
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Citations: View citations in EconPapers (4)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:jbrese:v:101:y:2019:i:c:p:144-151

DOI: 10.1016/j.jbusres.2019.04.011

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