Premium
Corporate governance and IPO underpricing in a cross‐national sample: A multilevel knowledge‐based view
Author(s) -
Judge William Q.,
Witt Michael A.,
Zattoni Alessandro,
Talaulicar Till,
Chen Jean Jinghan,
Lewellyn Krista,
Hu Helen Wei,
Shukla Dhirendra,
Bell Robert R. Greg,
Gabrielsson Jonas,
Lopez Felix,
Yamak Sibel,
Fassin Yves,
McCarthy Daniel,
Rivas Jose Luis,
Fainshmidt Stav,
Van Ees Hans
Publication year - 2015
Publication title -
strategic management journal
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 11.035
H-Index - 286
eISSN - 1097-0266
pISSN - 0143-2095
DOI - 10.1002/smj.2275
Subject(s) - initial public offering , agency (philosophy) , corporate governance , accounting , business , sample (material) , principal–agent problem , finance , sociology , social science , chemistry , chromatography
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 . Copyright © 2014 John Wiley & Sons, Ltd.