The Influence of Institutionally Embedded Ownership on Anglo-American Corporate Governance Migration into Emerging Economy IPO Firms

43 Pages Posted: 2 Dec 2017

See all articles by Bruce Allen Hearn

Bruce Allen Hearn

University of Southampton

Lars Oxelheim

Research Institute of Industrial Economics (IFN); University of Agder; Knut Wicksell Center for Financial Studies, Lund University

Trond Randøy

University of Agder - School of Management

Date Written: November 29, 2017

Abstract

We argue that the corporate governance of emerging economy IPO firms is influenced by firm-specific institutionally embedded block ownership groups. Applying an extended institutional logic perspective and using a mixed-effects ordered probit model, our findings from 190 IPO-firms from 22 African countries 2000‒2016, support the notion that five major block owner categories (corporate, private equity, non-executive, business group, state) exerts very different influence on African firms’ degree of adoption of Anglo-American corporate governance measures. We find that the influence from the various block owner groups is significantly moderated by institutional quality and tribalism, but to different degrees and directions across block owner groups. Our contextually embedded firm-specific results support the criticism of a one-hat-fits-all global and uniform corporate governance model.

Keywords: IPO; Corporate Governance Practice; Institutional Theory; Africa; Emerging Economies

JEL Classification: G23; G38; M12; M14; M16

Suggested Citation

Hearn, Bruce Allen and Oxelheim, Lars and Randøy, Trond, The Influence of Institutionally Embedded Ownership on Anglo-American Corporate Governance Migration into Emerging Economy IPO Firms (November 29, 2017). IFN Working Paper No. 1190, 2017. Available at SSRN: https://ssrn.com/abstract=3079517 or http://dx.doi.org/10.2139/ssrn.3079517

Bruce Allen Hearn

University of Southampton ( email )

University Rd.
Southampton SO17 1BJ, Hampshire SO17 1LP
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Lars Oxelheim (Contact Author)

Research Institute of Industrial Economics (IFN) ( email )

P.O. Box 55665
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Sweden
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University of Agder ( email )

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Norway

Knut Wicksell Center for Financial Studies, Lund University ( email )

P.O.Box 7080
S-220 07 Lund
Sweden
+46462228744 (Phone)

Trond Randøy

University of Agder - School of Management ( email )

Adger Research Foundation
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N-4604 Kristiansand
Norway
47 3814 1027 (Phone)

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