Starjournal Quotation Bell, R. Greg, Filatotchev, Igor, Aguilera, Ruth V. 2014. Corporate Governance and Investors' Perceptions of Foreign IPO Value: An Institutional Perspective. Academy of Management Journal, 57 (1), 301-320.


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Abstract

This article investigates stock market responses to different constellations of firm-level corporate governance mechanisms by focusing on foreign initial public offerings (IPOs) in the United States. We build on sociology-grounded research on financial market behavior and use a “nested” legitimacy framework to explore US investor perceptions of foreign IPO value. Using a fuzzy set theoretic methodology, we demonstrate how different combinations of monitoring and incentive-based corporate governance mechanisms lead to the same level of investor valuation of firms. Moreover, institutional factors related to the strength of minority shareholder protection in a foreign IPO's home country represent a boundary condition that affects the number of governance mechanisms required to achieve high value perceptions among US investors. Our findings contribute to the sociological perspective on comparative corporate governance and the dependencies between organizations and institutions.

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Publication's profile

Status of publication Published
Affiliation WU
Type of publication Journal article
Journal Academy of Management Journal
Citation Index SSCI
WU Journalrating 2009 A+
Starjournal Y
Language English
Title Corporate Governance and Investors' Perceptions of Foreign IPO Value: An Institutional Perspective
Volume 57
Number 1
Year 2014
Page from 301
Page to 320
Reviewed? Y
DOI http://dx.doi.org/10.5465/amj.2011.0146
Open Access N

Associations

People
Filatotchev, Igor (Details)
External
Aguilera, Ruth V.
Bell, R. Greg
Organization
Competence Center for Emerging Markets and CEE WE (Details)
Institute for International Business (Dikova) (Details)
Institute for International Business IN (Details)
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