Acquiring Financial Resources from Foreign Equity Capital Markets: An Examination of Factors Influencing Foreign Initial Public Offerings

Journal of Business Venturing, Vol. 22, No. 6, pp. 833-851

Posted: 22 Aug 2008

See all articles by Jani Hursti

Jani Hursti

Aalto University - Institute of Strategy and Intl. Business

Markku V. J. Maula

Aalto University, Department of Industrial Engineering and Management

Date Written: November 2007

Abstract

An increasing number of firms are making initial public offerings in foreign markets to circumvent constraints in the availability of capital and to provide an exit for their investors. However, previous research on foreign initial public offerings and their determinants is very limited. In this paper, we contribute to this literature by demonstrating that international experience of the management team and pre-IPO ownership by foreign investors are positively related to foreign initial public offerings. We test our hypotheses using data on initial public offerings of European companies from 1991-2001. The results support our hypotheses. The findings have important implications for entrepreneurs, investors, and public policy.

Keywords: Foreign initial public offerings, cross-border venture capital

JEL Classification: G15, G24, M13

Suggested Citation

Hursti, Jani and Maula, Markku V. J., Acquiring Financial Resources from Foreign Equity Capital Markets: An Examination of Factors Influencing Foreign Initial Public Offerings (November 2007). Journal of Business Venturing, Vol. 22, No. 6, pp. 833-851, Available at SSRN: https://ssrn.com/abstract=1246139

Jani Hursti

Aalto University - Institute of Strategy and Intl. Business ( email )

Finland

Markku V. J. Maula (Contact Author)

Aalto University, Department of Industrial Engineering and Management ( email )

PO Box 15500
FI-00076 AALTO
Espoo
Finland

HOME PAGE: http://users.aalto.fi/mmaula/

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