Influence of national culture on IPO activity

Gupta, Deepika R.; Veliyath, Rajaram; George, Rejie

doi:10.1016/j.jbusres.2018.04.023

Cited by 41 publications

(44 citation statements)

References 74 publications

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“…Second, these listing markets have experienced different economic developments and growths. Economic growth plays an important role on IPO activity and investor perceptions (La Porta et al, 1997;Gupta et al, 2018;Meluzín et al, 2018;Rija, 2019). Thus, the moderating effect of economic growth on the relationship between culture and IPO underpricing are demonstrated, thereby supplementing to the existing IPO underpricing literature.…”

Section: Introductionmentioning

confidence: 93%

“…Masculinity, as opposed to femininity, is defined as a preference in society for achievement and heroism (Hofstede & Bond, 1984). In masculine markets, investors are more overconfident so that they display less disposition effect (Zhou et al, 2011) and have more motivations for high dividends (Gupta et al, 2018). Long-term orientation connects the past to current and future actions or challenges (Hofstede & Bond, 1984).…”

Section: The Relationship Of Cultural Values With Ipo Underpricingmentioning

confidence: 99%

“…Indulgence versus restraint is essentially a measure of conduct code degree (Hofstede, 2001). Given higher indulgence in markets, the government may reduce incentives to regulate investor behavior; it will be more difficult to have an efficient IPO process (Gupta et al, 2018;Huang et al, 2019). For the compensation of unbalance between supply and demand of stocks, they are willing to purchase stocks with higher dividends.…”

Section: The Relationship Of Cultural Values With Ipo Underpricingmentioning

confidence: 99%

“…Following previous studies (Costa et al, 2013;Cai & Zhu, 2015;Chourou et al, 2018;Gupta et al, 2018), this study explores whether culture, as defined by Hofstede can explain cross-cultural differences in IPO underpricing. The results suggest a significant relationship between IPO underpricing and culture values.…”

Section: Introductionmentioning

confidence: 99%

“…Furthermore, economic growth plays important role in the stock markets, and has an effect on IPO activity (La Porta et al, 1997;Gupta et al, 2018;Meluzín et al, 2018;Rija, 2019). Companies go public under favorable economic conditions that support their growth and development (Ritter, 1984;Rija, 2019), the number of IPOs is significantly correlated with GDP growth (La Porta et al, 1997;Gupta et al, 2018). Meanwhile, during the bull market, investor perception has been the major factor of IPO underpricing (Cornelli et al, 2006;Zhang et al, 2019).…”

Section: Introductionmentioning

confidence: 99%

See 4 more Smart Citations

Cultural Values, Economic Growth, and International Ipo Underpricing: Evidence From Chinese Companies

Geng

Tan

2021

Journal of Business Economics and Management

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Listing markets have different cultural backgrounds and experience different economic development. This study examines the impact of cultural values and the moderating effect of economic growth on IPO underpricing issued by Chinese companies in different stock markets. Using a sample of 2429 IPOs issuing in four different stock markets for the 2000–2018 period, the results suggest that in markets with higher power distance or longer-term orientation, IPOs experience higher underpricing; in markets with higher uncertainty avoidance scores, masculinity, individualism, or indulgence, IPOs experience lower underpricing. The greater the multidimensional cultural distance is to the Chinese A-share market, the less underpricing IPOs experience. Economic growth has a significant moderating effect, thereby intensifying or restraining the relationship between culture and IPO underpricing. The additional analysis considering cross-listing companies, and the robustness tests considering alternative measures of culture further support the above conclusions. This study highlights the cultural and economic factors motivating IPO underpricing, can help managers select listing markets from cultural and economic perspective.

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Section: Introductionmentioning

confidence: 93%

Section: The Relationship Of Cultural Values With Ipo Underpricingmentioning

confidence: 99%

Section: The Relationship Of Cultural Values With Ipo Underpricingmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

See 3 more Smart Citations

Cultural Values, Economic Growth, and International Ipo Underpricing: Evidence From Chinese Companies

Geng

Tan

2021

Journal of Business Economics and Management

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How cultural dimensions, legal systems, and industry affect environmental reporting? Empirical evidence from an international perspective

Gallego‐Álvarez

Pucheta‐Martínez

2020

Bus Strat Env

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Past research has paid little attention to the impact of stakeholder engagement, cultural, legal and industrial contexts on environmental disclosure. Thus, the aim of this paper is to explore how these three institutional factors affect the reporting of environmental information by companies in different countries. This research draws on institutional theory: normative isomorphism, coercive isomorphism and mimetic isomorphism. This study uses the generalised method of moments (GMM) procedure. The findings show that the legal system and certain cultural dimensions such as individualism, uncertainty avoidance, long-term orientation and indulgence are determinants of voluntary disclosure of environmental information (individualism and indulgence -negatively; uncertainty avoidance and long-term orientationpositively), particularly when companies belong to industries with high environmental risk.

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Cultural environments and the appointment of female directors on boards: An analysis from a global perspective

Pucheta‐Martínez

Gallego‐Álvarez

Bel‐Oms

2020

Corp Soc Responsibility Env

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Hofstede's six cultural dimensions (power distance, individualism, masculinity, uncertainty avoidance, long‐term orientation and indulgence) has received little attention concerning the presence of female directors on boards. Moreover, past research has only focussed on four or five of these six cultural dimensions. Thus, this research aimed to analyse how gender diversity on boards is affected by all of the Hofstede cultural dimensions in a sample of firms operating in different countries. The data for this research were collected from Thomson Reuters database. The article draws on institutional theory, which suggests that firms are influenced by cultural aspects, as they are not separated from their environment but interact with their environment through relationships with stakeholders. The findings show that cultural dimensions, such as power distance, individualism and indulgence, have a positive effect on the proportion of female directors on boards. In contrast, the dimensions of masculinity and long‐term orientation affect the proportion negatively, and uncertainty avoidance does not seem to have an influence.

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Influence of national culture on IPO activity

Cited by 41 publications

References 74 publications

Cultural Values, Economic Growth, and International Ipo Underpricing: Evidence From Chinese Companies

Cultural Values, Economic Growth, and International Ipo Underpricing: Evidence From Chinese Companies

How cultural dimensions, legal systems, and industry affect environmental reporting? Empirical evidence from an international perspective

Cultural environments and the appointment of female directors on boards: An analysis from a global perspective

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