The institutional and board governance characteristics of African IPO firms with long term foreign partners
The institutional and board governance characteristics of African IPO firms with long term foreign partners
The attraction of blue-chip listings in emerging stock markets is a major policy initiative common across much of the developing world. However in many cases local blue-chip firms are the result of foreign Multinational Enterprise (MNE) firms engaging with local indigenous partners to form an international joint venture (IJV). Using a unique hand collected sample of 96 IPO firms from across Sub Saharan Africa (SSA) developing region which is characterised by considerable variation in state-level institutional quality I find evidence that minority outsider investors attracted to brand name IPO firms with early-stage long term foreign partners are more at risk of expropriation. In particular a combination of ineffective governance measures such as independent directors and committees that lack support in the SSA institutional environment, alongside dominance of foreign insider groups and weak informational environments, inhibiting revelation of potential expropriating behaviour by insiders infers this class of listing carries risks for investors.
Academy of International Business
Hearn, Bruce
45dccea3-9631-4e5e-914c-385896674dc2
2 July 2012
Hearn, Bruce
45dccea3-9631-4e5e-914c-385896674dc2
Hearn, Bruce
(2012)
The institutional and board governance characteristics of African IPO firms with long term foreign partners.
In Academy of International Business Annual Meeting, Washington DC, USA.
Academy of International Business.
36 pp
.
Record type:
Conference or Workshop Item
(Paper)
Abstract
The attraction of blue-chip listings in emerging stock markets is a major policy initiative common across much of the developing world. However in many cases local blue-chip firms are the result of foreign Multinational Enterprise (MNE) firms engaging with local indigenous partners to form an international joint venture (IJV). Using a unique hand collected sample of 96 IPO firms from across Sub Saharan Africa (SSA) developing region which is characterised by considerable variation in state-level institutional quality I find evidence that minority outsider investors attracted to brand name IPO firms with early-stage long term foreign partners are more at risk of expropriation. In particular a combination of ineffective governance measures such as independent directors and committees that lack support in the SSA institutional environment, alongside dominance of foreign insider groups and weak informational environments, inhibiting revelation of potential expropriating behaviour by insiders infers this class of listing carries risks for investors.
Text
SSA Foreign Partner Engagment BH
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Published date: 2 July 2012
Venue - Dates:
Academy of International Business Annual Meeting, , Washington DC, United States, 2012-07-02 - 2012-07-05
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Local EPrints ID: 423300
URI: http://eprints.soton.ac.uk/id/eprint/423300
PURE UUID: 93c6f388-a0d8-4ffc-aa88-4e6e6277e3fe
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Date deposited: 20 Sep 2018 16:30
Last modified: 16 Mar 2024 04:37
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