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Institutions and IPO activity: a multi-country study

Institutions and IPO activity: a multi-country study The purpose of this paper is to analyze the differential effects that institutions have on country IPO activity.Design/methodology/approachWith a sample of 64 countries over a 15-year period (2000-2014), the authors test the variables rule of law, uncertainty avoidance and masculinity on subsamples of developed (27) and emerging (37) countries to explore their influence on domestic IPO activity level.FindingsFor developed countries, only uncertainty avoidance and masculinity are significant. Within emerging countries, it is uncertainty avoidance and rule of law that are significant.Research limitations/implicationsUsing different country classification frameworks could yield more detailed and focused results on the influence that country-level variables have on IPO activity.Practical implicationsMultinational firms could use these findings for decisions related to their potential subsidiary IPOs.Originality/valueThis is a novel empirical work relating institutions to IPO activity, using emerging and developed country subsamples. It also focuses on IPO activity instead of IPO underpricing/performance and contributes to extend the scope of the IPO literature to global non-Anglo contexts. http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png Management Research: The Journal of the Iberoamerican Academy of Management Emerald Publishing

Institutions and IPO activity: a multi-country study

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Publisher
Emerald Publishing
Copyright
© Emerald Publishing Limited
ISSN
1536-5433
DOI
10.1108/mrjiam-09-2018-0862
Publisher site
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Abstract

The purpose of this paper is to analyze the differential effects that institutions have on country IPO activity.Design/methodology/approachWith a sample of 64 countries over a 15-year period (2000-2014), the authors test the variables rule of law, uncertainty avoidance and masculinity on subsamples of developed (27) and emerging (37) countries to explore their influence on domestic IPO activity level.FindingsFor developed countries, only uncertainty avoidance and masculinity are significant. Within emerging countries, it is uncertainty avoidance and rule of law that are significant.Research limitations/implicationsUsing different country classification frameworks could yield more detailed and focused results on the influence that country-level variables have on IPO activity.Practical implicationsMultinational firms could use these findings for decisions related to their potential subsidiary IPOs.Originality/valueThis is a novel empirical work relating institutions to IPO activity, using emerging and developed country subsamples. It also focuses on IPO activity instead of IPO underpricing/performance and contributes to extend the scope of the IPO literature to global non-Anglo contexts.

Journal

Management Research: The Journal of the Iberoamerican Academy of Management – Emerald Publishing

Published: Aug 21, 2019

Keywords: Emerging economies; Institutions; Cultural comparison; IPOs; Emerging; Developed; Culture

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