Institutional Influences on Board Composition of International Joint Venture Firms Listing on Emerging Stock Exchanges: Evidence From Africa

Hearn, B. (2015). Institutional influences on board composition of international joint venture firms listing on emerging stock exchanges: Evidence from Africa. Journal of World Business, 50(2), 205-219

47 Pages Posted: 1 Apr 2022

See all articles by Bruce Allen Hearn

Bruce Allen Hearn

University of Southampton; University of Bradford - School of Management

Date Written: February 9, 2015

Abstract

The attraction of blue-chip listings in emerging stock markets is a major policy initiative common across much of the developing world. In many cases however, local blue-chip firms are the result of foreign Multinational Enterprise (MNE) firms engaging with local indigenous partners to form an international joint venture (IJV). These are unique with bilateral governance structures underscoring co-ownership between partners of residual cash flows and assets of the IJV. Using a unique and comprehensive sample of 202 IPO firms from across the emerging African region evidence of both a pronounced internal as well as external role for IJV boards was found. While the internal role underscores significantly smaller board sizes with these being populated by higher proportions of foreign directors from parent and related investors, the external role involves markedly higher proportions of nonexecutives from military and university social elite backgrounds. Finally evidence that IJV firms are more likely under conditions of weaker state-level corruption control was found.

Keywords: IPO; Board of Directors; Foreign Joint Ventures; Institutions; Africa

Suggested Citation

Hearn, Bruce Allen, Institutional Influences on Board Composition of International Joint Venture Firms Listing on Emerging Stock Exchanges: Evidence From Africa (February 9, 2015). Hearn, B. (2015). Institutional influences on board composition of international joint venture firms listing on emerging stock exchanges: Evidence from Africa. Journal of World Business, 50(2), 205-219 , Available at SSRN: https://ssrn.com/abstract=4030679

Bruce Allen Hearn (Contact Author)

University of Southampton ( email )

University Rd.
Southampton SO17 1BJ, Hampshire SO17 1LP
United Kingdom

University of Bradford - School of Management ( email )

Emm Lane
Bradford, West Yorkshire Bd9 4JL
United Kingdom

Do you have a job opening that you would like to promote on SSRN?

Paper statistics

Downloads
15
Abstract Views
146
PlumX Metrics