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Corporate governance and IPO underpricing in a cross‐national sample: A multilevel knowledge‐based view
Authors:William Q Judge  Michael A Witt  Alessandro Zattoni  Till Talaulicar  Jean Jinghan Chen  Krista Lewellyn  Helen Wei Hu  Dhirendra Shukla  R Greg Bell  Jonas Gabrielsson  Felix Lopez  Sibel Yamak  Yves Fassin  Daniel McCarthy  Jose Luis Rivas  Stav Fainshmidt  Hans Van Ees
Institution:1. Department of Management, Old Dominion University, Norfolk, Virginia, U.S.A.;2. Economics & Political Science Area, INSEAD, Singapore, Singapore;3. Strategic and Entrepreneurial Management Department, SDA Bocconi School of Management, Milan, Italy;4. Department of Organization and Management, University of Erfurt, Erfurt, Germany;5. Centre of Accounting, Finance and International Banking, University of Southampton, Southampton, U.K.;6. Department of Management & Marketing, University of Wyoming, Laramie, Wyoming, U.S.A.;7. Department of Management & Marketing, University of Melbourne, Melbourne, Australia;8. Management and Entrepreneurship Department, University of New Brunswick, Fredericton, New Brunswick, Canada;9. Department of Management, University of Dallas, Irving, Texas, U.S.A.;10. Centre for Innovation, Research and Competence in the Learning Economy, Lund University, Lund, Sweden;11. Department of Finance & Accounting, University of Valladolid, Valladolid, Spain;12. Department of Management, Galatasaray University, Istanbul, Turkey;13. Vlerick Business School, Ghent University, Gent, Belgium;14. Department of Management, Northeastern University, Boston, Massachusetts, U.S.A.;15. ITAM School of Business, Mexico City, Mexico;16. Department of Management & International Business, Florida International University, Miami, Florida, U.S.A.;17. Faculty of Economics & Business, University of Groningen, Groningen, The Netherlands
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. Copyright © 2014 John Wiley & Sons, Ltd.
Keywords:IPO underpricing  corporate governance  knowledge‐based view  cross‐national sample  multilevel models
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