CEO International Experience and Foreign IPOs

36 Pages Posted: 24 Jan 2018 Last revised: 7 Jan 2020

See all articles by Tinghua Duan

Tinghua Duan

IESEG School of Management

Wenxuan Hou

University of Edinburgh - Business School

Bill Rees

University of Edinburgh - Accounting and Finance

Date Written: November 30, 9

Abstract

This paper examines listing location as a managerial decision by using a sample of IPOs of Chinese entrepreneurial firms in mainland China, the United States and Hong Kong. We find that Chinese entrepreneurial firms managed by CEOs with international experience are more likely to undertake foreign IPOs, especially those returned from countries with more advanced legal institutions and those operating in high-tech industries. The credibility crisis for Chinese firms in 2010 switched the focus of foreign IPOs from the US to Hong Kong. These results are consistent across returnee CFOs and other senior executives with international experience.

Keywords: China, CEO, CFO, Returnee, Cross-Border IPOs, Entrepreneurial Firms, IPO Initial Returns, High Tech Industries

JEL Classification: L21, F23, G34, L26, M12

Suggested Citation

Duan, Tinghua and Hou, Wenxuan and Rees, William, CEO International Experience and Foreign IPOs (November 30, 9). Economic Modelling, Forthcoming, Available at SSRN: https://ssrn.com/abstract=3104098 or http://dx.doi.org/10.2139/ssrn.3104098

Tinghua Duan (Contact Author)

IESEG School of Management ( email )

Socle de la Grande Arche
1 Parvis de la Defense
Puteaux, Paris 92800
France

Wenxuan Hou

University of Edinburgh - Business School ( email )

29 Buccleuch Place
EDINBURGH, Scotland EH89JS
United Kingdom

William Rees

University of Edinburgh - Accounting and Finance ( email )

29 Buccleuch Place
Edinburgh, EH8 9JS
United Kingdom
+44 131 651 5244 (Phone)

HOME PAGE: http://www.business-school.ed.ac.uk

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