William Q. Judge, Michael A. Witt, Alessandro Zattoni, Till Talaulicar, Jean Jinghan Chen, Krista Lewellyn, Helen Wei Hu, Dhirendra Shukla, R. Greg Bell, Jonas Gabrielsson, Felix Lopez, Sibel Yamak, Yves Fassin, Daniel McCarthy, Jose Luis Rivas, Stav Fainshmidt, Hans Van Ees
Prior studies of IPO underpricing, mostly using agency theory and single-country samples, have generally fallen short. In this study, we employ the knowledge-based view (KBV) to explore underpricing across 17 countries. We find that agency indicators are insignificant predictors, board of director knowledge limits underpricing, and external knowledge both substitutes for and complements internal board knowledge. This third finding suggests that future KBV studies should consider how internal and external knowledge states interact with each other. Our study offers new insights into the antecedents of underpricing and extends our understanding of comparative governance and the KBV of the firm. Copyright © 2014 John Wiley & Sons, Ltd.
Department of Management, Old Dominion University, Norfolk, 23529, VA, United States; Economics and Political Science Area, INSEAD, Singapore, Singapore; Strategic and Entrepreneurial Management Department, SDA Bocconi School of Management, Milan, Italy; Department of Organization and Management, University of Erfurt, Erfurt, Germany; Centre of Accounting, Finance and International Banking, University of Southampton, Southampton, United Kingdom; Department of Management and Marketing, University of Wyoming, Laramie, WY, United States; Department of Management and Marketing, University of Melbourne, Melbourne, Australia; Management and Entrepreneurship Department, University of New Brunswick, Fredericton, NB, Canada; Department of Management, University of Dallas, Irving, TX, United States; Centre for Innovation, Research and Competence in the Learning Economy, Lund University, Lund, Sweden; Department of Finance and Accounting, University of Valladolid, Valladolid, Spain; Department of Management, Galatasaray University, Istanbul, Turkey; Vlerick Business School, Ghent University, Gent, Belgium; Department of Management, Northeastern University, Boston, MA, United States; ITAM School of Business, Mexico City, Mexico; Department of Management and International Business, Florida International University, Miami, FL, United States; Faculty of Economics and Business, University of Groningen, Groningen, Netherlands
