Moderating Effects of Founders’ Role on the Influence of Internationalization on IPO Performance of Listed Companies in Thailand

Tharitsaya Kongkaew, Supa Tongkong and Sungworn Ngudgratoke
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Tharitsaya Kongkaew: Faculty of Business Administration, Rajamangala University of Technology Thanyaburi, Pathum Thani 12110, Thailand
Supa Tongkong: Faculty of Business Administration, Rajamangala University of Technology Thanyaburi, Pathum Thani 12110, Thailand
Sungworn Ngudgratoke: School of Educational Studies, Sukhothai Thammathirat Open University, Nonthaburi 11120, Thailand

IJFS, 2021, vol. 9, issue 3, 1-16

Abstract: Previous research suggests that internationalization affects initial public offering (IPO) performance in the short term, but it less is known about the founders’ role in the relationship between internationalization and IPO performance. The objectives of this study were to investigate moderating effects of the founders’ role on the impact of internationalization on IPO performance of newly listed companies. The samples included 80 international firms listed in Thailand stock markets from 2013 to 2020. Multiple regression analysis was employed to test the effects of internationalization on IPO performance, and the PROCESS macro was applied to test the moderating effects. Founder CEO as a proxy of a founders’ role was a moderator variable where internationalization was a predictor variable and IPO underpricing, a proxy of IPO performance, was the outcome variable. The results revealed that internationalization demonstrated no statistically significant effect on IPO underpricing. A non-founder CEO had a moderating effect on the influence of internationalization on IPO underpricing, whereas a founder CEO revealed no moderating effect. Specifically, internationalization had a negative effect on IPO underpricing once an international firm had a non-founder CEO. A decrease in IPO underpricing of international firm is clearly explained by the results of this study.

Keywords: initial public offering; IPO underpricing; internationalization; founder CEO; moderating effect (search for similar items in EconPapers)
JEL-codes: F2 F3 F41 F42 G1 G2 G3 (search for similar items in EconPapers)
Date: 2021
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