CORPORATE GOVERNANCE AND INVESTORS' PERCEPTIONS OF FOREIGN IPO VALUE: AN INSTITUTIONAL PERSPECTIVE

We build on sociology-grounded research on financial market behavior and suggest a “nested” legitimacy framework to explore U.S. investor perceptions of foreign IPO value. We draw on a fuzzy-set theoretic approach to demonstrate how different combinations of monitoring and incentive-based corporate governance mechanisms lead to the same level of investor valuations of firms. We also argue that institutional factors related to the minority shareholder protection strength in the foreign IPO’s home country represent a boundary condition that affects the number of governance mechanisms required to achieve U.S. investors’ high value perceptions. Our findings, drawn from a unique, hand-collected dataset of foreign IPOs in the U.S, contribute to the sociological perspective on comparative corporate governance and the inter-dependencies between organizations and institutions

Beyond product markets: new insight on liability of foreignness from capital markets

We expand the Liability of Foreignness (LOF) construct beyond the product market domain to include liabilities faced by firms attempting to secure resources in host capital markets. Drawing from institutional theory and research in finance, we identify institutional distance, information asymmetry, unfamiliarity, and cultural differences as the main sources of capital market LOF (CMLOF). We then propose that the impact of these antecedent factors can be moderated through bonding, signaling, organizational isomorphism, and reputational endorsements

Corporate Governance Practices: Dissemination on Turkish Web Sites

As Information and Communication Technologies (ICTs) evolve, we have started to feel their significant impact on our professional lives. Recent corporate scandals in developed economies have also underscored the importance of adopting appropriate corporate governance practices. This study aims to explore web site design and content features of Istanbul Stock Exchange (ISE) listed firms. While our analysis has revealed that the utilization of design features and the type and extent of the corporate information content do not differ much among the studied industries, we found some statistical differences based on Corporate Governance Ratings (CGRs). Turkish firms seem to be in their early stages of using ICTs in corporate governance practices