Strategic and institutional effects on foreign IPO performance: Examining the impact of country of origin, corporate governance, and host country effects (Peer Reviewed)

By integrating signaling research with an institutional perspective we examine how country of
origin, corporate governance, and host market effects impact foreign IPO performance. Using a
sample of 202 foreign IPOs listed in the U.S. or U.K in 2002-2007 results indicate both the legal
environment surrounding these organizations in their countries of origin and board independence
impact the success of foreign firms at IPO. However, the institutional environment of the chosen
IPO market impacts the salience of country and corporate governance signals for foreign IPO
firms suggesting a more contextualized framework of IPO valuation is necessary.