Purpose

The purpose of this study is to examine how the liability of foreignness (LOF), choice of incorporation and an institutional change independently and jointly affect a reverse merger (RM) firm’s capital-raising performance.

Design/methodology/approach

The study draws on the data of shell reverse merger transactions in the USA from 2007 to 2016.

Findings

This paper finds that LOF and the choice of incorporation as a signal have a significant effect on RM firms’ capital-raising performance. In addition, this study finds that the effectiveness of the signaling can be affected by LOF. Finally, this paper finds that an institutional change that lowers the entry barrier to the initial public offering (which is a superior alternate to an RM) affects the impacts of LOF and signaling on RM firms’ capital-raising performance.

Originality/value

The study contributes to the international business literature by examining the RM (which has been an under-researched topic in the literature) by drawing on the LOF framework. The study finds that LOF and the choice of state for incorporation affect RM firms’ capital-raising performance; moreover, these relationships are affected by an institutional change.

中文翻译：

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外国责任、注册地和制度变迁对反向并购公司融资绩效的影响

目的

本研究的目的是研究外国责任（LOF）、公司选择和制度变迁如何独立和共同影响反向并购（RM）公司的融资业绩。

设计/方法/方法

该研究借鉴了 2007 年至 2016 年美国壳牌反向并购交易的数据。

发现

本文发现 LOF 和作为信号的公司选择对 RM 公司的融资绩效有显着影响。此外，本研究发现信号传导的有效性会受到 LOF 的影响。最后，本文发现，降低首次公开募股（比 RM 更好的替代方案）的进入壁垒的制度变革会影响 LOF 和信号对 RM 公司融资业绩的影响。

原创性/价值

该研究通过利用 LOF 框架检查 RM（在文献中一直是研究不足的主题），为国际商业文献做出了贡献。研究发现，LOF 和成立州的选择会影响 RM 公司的融资绩效；此外，这些关系受到体制变革的影响。