Corporate governance and IPO underpricing in a cross-national sample: A multilevel knowledge-based view

William Q. Judge; Michael A. Witt; Alessandro Zattoni; Till Talaulicar; Jean Jinghan Chen; Krista Lewellyn; Helen Wei Hu; Dhirendra Shukla; R. Greg Bell (Robert); Jonas Gabrielsson; Felix Lopez; Sibel Yamak; Yves Fassin; Daniel McCarthy; Jose Luis Rivas; Stav Fainshmidt; Hans Van Ees

doi:10.1002/smj.2275

Corporate governance and IPO underpricing in a cross-national sample: A multilevel knowledge-based view

William Q. Judge, Michael A. Witt, Alessandro Zattoni, Till Talaulicar, Jean Jinghan Chen, Krista Lewellyn, Helen Wei Hu, Dhirendra Shukla, R. Greg Bell (Robert), Jonas Gabrielsson, Felix Lopez, Sibel Yamak, Yves Fassin, Daniel McCarthy, Jose Luis Rivas, Stav Fainshmidt, Hans Van Ees

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Abstract

Prior studies of IPO underpricing, mostly using agency theory and single-country samples, have generally fallen short. In this study, we employ the knowledge-based view (KBV) to explore underpricing across 17 countries. We find that agency indicators are insignificant predictors, board of director knowledge limits underpricing, and external knowledge both substitutes for and complements internal board knowledge. This third finding suggests that future KBV studies should consider how internal and external knowledge states interact with each other. Our study offers new insights into the antecedents of underpricing and extends our understanding of comparative governance and the KBV of the firm.

Original language	English
Pages (from-to)	1174-1185
Journal	Strategic Management Journal
Volume	36
Issue number	8
DOIs	https://doi.org/10.1002/smj.2275
Publication status	Published - 2015

Subject classification (UKÄ)

Business Administration

Free keywords

IPO underpricing
corporate governance
knowledge-based view
cross-national sample
multilevel models

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10.1002/smj.2275

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Judge, W. Q., Witt, M. A., Zattoni, A., Talaulicar, T., Chen, J. J., Lewellyn, K., Hu, H. W., Shukla, D., Bell (Robert), R. G., Gabrielsson, J., Lopez, F., Yamak, S., Fassin, Y., McCarthy, D., Rivas, J. L., Fainshmidt, S., & Van Ees, H. (2015). Corporate governance and IPO underpricing in a cross-national sample: A multilevel knowledge-based view. Strategic Management Journal, 36(8), 1174-1185. https://doi.org/10.1002/smj.2275

@article{d76e0b6915304c9986a5da634fd48c22,

title = "Corporate governance and IPO underpricing in a cross-national sample: A multilevel knowledge-based view",

abstract = "Prior studies of IPO underpricing, mostly using agency theory and single-country samples, have generally fallen short. In this study, we employ the knowledge-based view (KBV) to explore underpricing across 17 countries. We find that agency indicators are insignificant predictors, board of director knowledge limits underpricing, and external knowledge both substitutes for and complements internal board knowledge. This third finding suggests that future KBV studies should consider how internal and external knowledge states interact with each other. Our study offers new insights into the antecedents of underpricing and extends our understanding of comparative governance and the KBV of the firm.",

keywords = "IPO underpricing, corporate governance, knowledge-based view, cross-national sample, multilevel models",

author = "Judge, {William Q.} and Witt, {Michael A.} and Alessandro Zattoni and Till Talaulicar and Chen, {Jean Jinghan} and Krista Lewellyn and Hu, {Helen Wei} and Dhirendra Shukla and {Bell (Robert)}, {R. Greg} and Jonas Gabrielsson and Felix Lopez and Sibel Yamak and Yves Fassin and Daniel McCarthy and Rivas, {Jose Luis} and Stav Fainshmidt and {Van Ees}, Hans",

year = "2015",

doi = "10.1002/smj.2275",

language = "English",

volume = "36",

pages = "1174--1185",

journal = "Strategic Management Journal",

issn = "0143-2095",

publisher = "John Wiley & Sons Inc.",

number = "8",

}

Judge, WQ, Witt, MA, Zattoni, A, Talaulicar, T, Chen, JJ, Lewellyn, K, Hu, HW, Shukla, D, Bell (Robert), RG, Gabrielsson, J, Lopez, F, Yamak, S, Fassin, Y, McCarthy, D, Rivas, JL, Fainshmidt, S & Van Ees, H 2015, 'Corporate governance and IPO underpricing in a cross-national sample: A multilevel knowledge-based view', Strategic Management Journal, vol. 36, no. 8, pp. 1174-1185. https://doi.org/10.1002/smj.2275

TY - JOUR

T1 - Corporate governance and IPO underpricing in a cross-national sample: A multilevel knowledge-based view

AU - Judge, William Q.

AU - Witt, Michael A.

AU - Zattoni, Alessandro

AU - Talaulicar, Till

AU - Chen, Jean Jinghan

AU - Lewellyn, Krista

AU - Hu, Helen Wei

AU - Shukla, Dhirendra

AU - Bell (Robert), R. Greg

AU - Gabrielsson, Jonas

AU - Lopez, Felix

AU - Yamak, Sibel

AU - Fassin, Yves

AU - McCarthy, Daniel

AU - Rivas, Jose Luis

AU - Fainshmidt, Stav

AU - Van Ees, Hans

PY - 2015

Y1 - 2015

N2 - Prior studies of IPO underpricing, mostly using agency theory and single-country samples, have generally fallen short. In this study, we employ the knowledge-based view (KBV) to explore underpricing across 17 countries. We find that agency indicators are insignificant predictors, board of director knowledge limits underpricing, and external knowledge both substitutes for and complements internal board knowledge. This third finding suggests that future KBV studies should consider how internal and external knowledge states interact with each other. Our study offers new insights into the antecedents of underpricing and extends our understanding of comparative governance and the KBV of the firm.

AB - Prior studies of IPO underpricing, mostly using agency theory and single-country samples, have generally fallen short. In this study, we employ the knowledge-based view (KBV) to explore underpricing across 17 countries. We find that agency indicators are insignificant predictors, board of director knowledge limits underpricing, and external knowledge both substitutes for and complements internal board knowledge. This third finding suggests that future KBV studies should consider how internal and external knowledge states interact with each other. Our study offers new insights into the antecedents of underpricing and extends our understanding of comparative governance and the KBV of the firm.

KW - IPO underpricing

KW - corporate governance

KW - knowledge-based view

KW - cross-national sample

KW - multilevel models

U2 - 10.1002/smj.2275

DO - 10.1002/smj.2275

M3 - Article

SN - 0143-2095

VL - 36

SP - 1174

EP - 1185

JO - Strategic Management Journal

JF - Strategic Management Journal

IS - 8

ER -

Corporate governance and IPO underpricing in a cross-national sample: A multilevel knowledge-based view

Abstract

Subject classification (UKÄ)

Free keywords

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