Article ID | Journal | Published Year | Pages | File Type |
---|---|---|---|---|
5107203 | Journal of World Business | 2016 | 13 Pages |
Abstract
Foreign firms undergoing an initial public offering in developed economies face a dual liability of newness and foreignness that can negatively impact the firm's ability to access capital. In this study, we examine the ability of returnee independent directors to overcome such a liability among 232 foreign listings in the U.S. We find that returnee independent directors positively impact the price premium of the foreign IPO. We also find that this relationship is contingent on the level of ownership retained by non-independent directors, the level of ownership retained by venture capitalists, and investor protection in the firm's country of origin.
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Authors
Weiwen Li, Garry D. Bruton, Igor Filatotchev,