Purpose

The purpose of this paper is to investigate which cross-country characteristics influence the going-public decisions and how the cultural values of the countries affect initial public offering (IPO) firms’ profitability and risk of financial distress.

Design/methodology/approach

Using a sample of privately held and firms that went public on the European and Asian Stock Exchanges between 2007 and 2011, this paper applies probit model and ordinary least squares regression to examine which cross-country characteristics could affect the decision to go public and how cultural values affect the profitability and risk of IPO firms.[AQ1] In addition, to overcome multicollinearity concerns caused by the use of Global Leadership and Organizational Behavioural Effectiveness culture dimensions, this paper factor analyses the dimensions using principal component analysis.

Findings

The results are as follows. First, this paper finds that firms in tradition-oriented countries are less likely to go public, while firms in result-oriented countries are more likely to hold an IPO. Second, this paper finds that country characteristics (i.e. financial deepening and taxation) affect the going-public decision. Third, this paper documents that IPO firms in traditionally and result-oriented countries have positive profitability and less risk of financial distress.

Practical implications

This study is intended for all those European and Asian policymakers and managers who want to improve their knowledge about what different indicators can establish the decision of firms that going-public facing different stages of their lifecycle. Specifically, policymakers wishing to promote IPO-activity in their countries may find it useful to strengthen the set of formal-institutions both to reduce corporate-taxation and to reduce the uncertainty associated with first-time share issuance and investment in such initiatives. This study is also intended for managers of companies that are not yet publicly-traded on their national stock-markets to be helpful to their decision-making processes.

Originality/value

This paper aims to extend the growing literature on the effects of cross-country factors on economic decision-making in finance and particularly adds to research that investigates the influence of these factors on the IPO decision of European and Asian firms.

中文翻译：

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民族文化如何影响 IPO 决策？来自欧洲和亚洲的证据

目的

本文的目的是调查哪些跨国特征会影响上市决策，以及这些国家的文化价值观如何影响首次公开募股 (IPO) 公司的盈利能力和财务困境风险。

设计/方法/方法

本文以 2007 年至 2011 年在欧洲和亚洲证券交易所上市的私营企业和上市公司为样本，应用概率模型和普通最小二乘回归来检验哪些跨国特征会影响上市决策以及文化[AQ1] 此外，为了克服因使用全球领导力和组织行为有效性文化维度而引起的多重共线性问题，本文采用主成分分析法对这些维度进行因子分析。

发现

结果如下。首先，本文发现传统导向型国家的企业上市的可能性较小，而结果导向型国家的企业则更有可能进行 IPO。其次，本文发现国家特征（即金融深化和税收）影响上市决策。第三，本文记录了传统和注重结果的国家的 IPO 公司具有正盈利能力和较小的财务困境风险。

实际影响

本研究面向所有希望提高对哪些不同指标可以确定上市公司面临其生命周期不同阶段的决策的知识的欧洲和亚洲政策制定者和管理人员。具体而言，希望在本国促进 IPO 活动的政策制定者可能会发现，加强正式机构的设置有助于减少公司税收，并减少与首次发行股票和投资此类举措相关的不确定性。本研究还针对尚未在其国内股票市场公开交易的公司的经理，以帮助他们的决策过程。

原创性/价值

本文旨在扩展越来越多的关于跨国因素对金融经济决策影响的文献，特别是增加了研究这些因素对欧洲和亚洲公司 IPO 决策的影响的研究。