Liability of Privateness/Foreignness and Foreign Listing of Emerging Economy Firms

Time：June 4th (Thursday) 10am -12noon

Location: Zhifuxuan, National School of Development, Peking U.

Speaker: Yangwen Wang, Assistant Professor, Department of General Management,Business School, Renmin University of China

 

 

Abstract：

This study develops an institutional arbitrage perspective regarding the strategic drivers behind the foreign listing of emerging economy firms (EEFs). Drawing on an institution-based view of strategy and an agency perspective of government, we argue that a higher level of liability of privateness/foreignness, as reflected in the level of private/foreign ownership, makes EEFs more vulnerable to expropriation by the home government. Consequently, they are more likely to pursue a foreign listing in developed markets to gain additional investment protection. Using a sample of listed firms from China, we found incremental explanatory power of private/foreign ownership over finance-based perspectives in predicting foreign listing. These effects were lessened if the firm had a politically-connected CEO, and strengthened if the level of subnational government intervention was higher.

 

王阳雯，香港中文大学管理学博士，现为中国人民大学商学院企业管理系讲师。王博士的主要研究领域为新兴经济体企业的跨国战略。