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
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: Suggested Citation