Liability of foreignness in capital markets: Institutional distance and the cost of debt

Journal of Corporate Finance - Tập 57 - Trang 142-160 - 2019
Yiwen (Jenny) Gu1, Igor Filatotchev2,3, R. Greg Bell1, Abdul A. Rasheed4
1Gupta College of Business, University of Dallas, Irving, TX 75062, United States
2King's Business School, King's College London, Bush House, 30 Aldwych, London WC2B 4BG, UK
3Vienna University of Economics and Business, Austria
4Department of Management, Box 19467, College of Business, University of Texas at Arlington, Arlington, TX 76019-0467, United States

Tài liệu tham khảo

Altınkılıç, 2000, Are there economies of scale in underwriting fees? Evidence of rising external financing costs, Rev. Financ. Stud., 13, 191, 10.1093/rfs/13.1.191 Amihud, 1991, Liquidity, maturity, and the yields on US Treasury securities, J. Financ., 46, 1411, 10.1111/j.1540-6261.1991.tb04623.x Atilgan, 2010 Barro, 2003, Religion and economic growth, Am. Sociol. Rev., 68, 760, 10.2307/1519761 Bekaert, 2003, Emerging market finance, J. Empir. Financ., 10, 3, 10.1016/S0927-5398(02)00054-3 Bell, 2012, The liability of foreignness in capital markets: sources and remedies, J. Int. Bus. Stud., 43, 107, 10.1057/jibs.2011.55 Bell, 2014, Corporate governance and investors' perceptions of foreign IPO value: an institutional perspective, Acad. Manag. J., 57, 301, 10.5465/amj.2011.0146 Berry, 2010, An institutional approach to cross-national distance, J. Int. Bus. Stud., 41, 1460, 10.1057/jibs.2010.28 Beugelsdijk, 2010, A cultural explanation of the foreign bias in international asset allocation, J. Bank. Financ., 34, 2121, 10.1016/j.jbankfin.2010.01.020 Bhattacharya, 2007, The home court advantage in international corporate litigation, J. Law Econ., 50, 625, 10.1086/519817 Boulton, 2010, IPO underpricing and international corporate governance, J. Int. Bus. Stud., 41, 206, 10.1057/jibs.2009.38 Bronson, 2009 Bruner, 2004, US-bound IPOs: issue costs and selective entry, Financ. Manag., 33, 39 Burger, 2003, 755 Burger, 2004 Buse, 1970, Expectations, prices, coupons and yields, J. Financ., 25, 809, 10.1111/j.1540-6261.1970.tb00555.x Caks, 1977, The coupon effect on yield to maturity, J. Financ., 103, 10.1111/j.1540-6261.1977.tb03245.x Chaplinsky, 2004, The impact of sec rule 144A on corporate debt issuance by international firms, J. Bus., 77, 10.1086/422441 Chen, 2007, Corporate yield spreads and bond liquidity, J. Financ., 62, 119, 10.1111/j.1540-6261.2007.01203.x Chui, 2010, Individualism and momentum around the world, J. Financ., 65, 361, 10.1111/j.1540-6261.2009.01532.x Claessens, 2007, International financial integration through equity markets: which firms from which countries go global?, J. Int. Money Financ., 26, 788, 10.1016/j.jimonfin.2007.04.002 Collin-Dufresne, 2001, The determinants of credit spread changes, J. Financ., 2177, 10.1111/0022-1082.00402 Cumming, 2017, Senbet L, Law, finance, and the international mobility of corporate governance, J. Int. Bus. Stud., 48, 123, 10.1057/s41267-016-0063-7 Denk, 2012, Liabilities of foreignness revisited: a review of contemporary studies and recommendations for future research, J. Int. Manag., 18, 322, 10.1016/j.intman.2012.07.001 DeYoung, 1996, Foreign-owned banks in the United States: earning market share or buying it?, J. Money Credit Bank., 28, 622, 10.2307/2078074 Duffee, 1998, The relation between treasury yields and corporate bond yield spreads, J. Financ., 53, 2225, 10.1111/0022-1082.00089 Eden, 2004, Distance matters: Liability of foreignness, institutional distance and ownership strategy, 16, 187, 10.1016/S0747-7929(04)16010-1 Fernandez, 2007 Fidora, 2007, Home bias in global bond and equity markets: the role of real exchange rate volatility, J. Int. Money Financ., 26, 631, 10.1016/j.jimonfin.2007.03.002 Filatotchev, 2016, Globalization of capital markets: implications for firm strategies, J. Int. Manag., 22, 211, 10.1016/j.intman.2016.04.001 French, 1991, Investor diversification and international equity markets, Am. Econ. Rev., 81, 222 Frésard, 2010 Frieder, 2005, Brand perceptions and the market for common stocks, J. Financ. Quant. Anal., 40, 57, 10.1017/S0022109000001745 Gaur, 2007, Ownership strategies and survival of foreign subsidiaries: institutional distance and experience, J. Manag., 33, 84 Ghemawat, 2001, Distance still matters, Harv. Bus. Rev., 79, 137 Gooderham, 2013 Gozzi, 2010, Patterns of international capital raisings, J. Int. Econ., 8, 45, 10.1016/j.jinteco.2009.05.007 Grinblatt, 2000, The investment behavior and performance of various investor-types: a study of Finland's unique data set, J. Financ. Econ., 55, 43, 10.1016/S0304-405X(99)00044-6 Guiso, 2005 Guiso, 2006, Does culture affect economic outcomes?, J. Econ. Perspect., 20, 23, 10.1257/jep.20.2.23 Guiso, 2008, Trusting the stock market, J. Financ., 63, 2557, 10.1111/j.1540-6261.2008.01408.x Guiso, 2009, Cultural biases in economic exchange?, Q. J. Econ., 124, 1095, 10.1162/qjec.2009.124.3.1095 Hasan, 1996, Efficiency of Japanese multinational banks in the United States, 14, 157 Hewitt, 2003, Conditions influencing headquarters and foreign subsidiary roles in marketing activities and their effects on performance, J. Int. Bus. Stud., 34, 567, 10.1057/palgrave.jibs.8400054 Hofstede, 2001 Huang, 2012, How much of the corporate-treasury yield spread is due to credit risk?, Rev. Asset. Pric. Stud., 2, 153, 10.1093/rapstu/ras011 Hymer, 1976 Jensen, 1976, Theory of the firm: managerial behavior, agency costs and ownership structure, J. Financ. Econ., 3, 305, 10.1016/0304-405X(76)90026-X Karolyi, 2006, The world of cross-listings and cross-listings of the world: challenging conventional wisdom, Rev. Finan., 10, 99, 10.1007/s10679-006-6980-8 Kaufmann, 2006, Governance matters: aggregate and individual governance indicators for 1996–2005 Keloharju, 2012, Do investors buy what they know? Product market choices and investment decisions, Rev. Financ. Stud., 25, 2921, 10.1093/rfs/hhs090 Kester, 1996, American and Japanese corporate governance, 107 Klock, 2005, Does corporate governance matter to bondholders?, J. Financ. Quant. Anal., 40, 693, 10.1017/S0022109000001940 Kogut, 1988, The effect of national culture on the choice of entry mode, J. Int. Bus. Stud., 19, 411, 10.1057/palgrave.jibs.8490394 La Porta, 1997, Legal determinants of external finance, J. Financ., Vol. LII, 10.1111/j.1540-6261.1997.tb02727.x La Porta, 1998, Law and finance, J. Polit. Econ., 106, 1113, 10.1086/250042 Lane, 2005 Lau, 2009, Does proximity matter in international bond underwriting?, J. Bank. Financ., 34, 2027, 10.1016/j.jbankfin.2010.01.011 Leland, 1996, Optimal capital structure, endogenous bankruptcy, and the term structure of credit spreads, J. Financ., 987, 10.1111/j.1540-6261.1996.tb02714.x Linder, 1961 Livingston, 2007, Asset opaqueness and split bond ratings, Financ. Manag., Vol. 36, 49, 10.1111/j.1755-053X.2007.tb00080.x Lord, 2000, Organizational learning about new international markets: exploring the internal transfer of local market knowledge, J. Int. Bus. Stud., 31, 573, 10.1057/palgrave.jibs.8490923 Melnik, 2003, Debt issue costs and issue characteristics in the market for US dollar denominated international bonds, Eur. Finan. Rev., 7, 277, 10.1023/A:1024583827989 Mezias, 2002, Identifying liabilities of foreignness and strategies to minimize their effects: the case of labor lawsuit judgments in the United States, Strateg. Manag. J., 23, 229, 10.1002/smj.220 Mezias, 2002, How to identify liabilities of foreignness and assess their effects on multinational corporations, J. Int. Manag., 8, 265, 10.1016/S1075-4253(02)00069-8 Miller, 2002, Is there a liability of foreignness in global banking? An empirical test of banks' X-efficiency, Strateg. Manag. J., 23, 55, 10.1002/smj.212 Miller, 2002, Liability of foreignness and membership in a regional economic group: analysis of the European Union, J. Int. Manag., 8, 323, 10.1016/S1075-4253(02)00071-6 Moore, 2012, Foreign IPO capital market choice: understanding the institutional fit of corporate governance, Strateg. Manag. J., 33, 914, 10.1002/smj.1953 Morgan, 2002, Rating banks: risk and uncertainty in an opaque industry, Am. Econ. Rev., 92, 874, 10.1257/00028280260344506 Nelson, 1993, Technical innovation and national systems, 3 Oxley, 2001, E-Commerce readiness: institutional environment and international competitiveness, J. Int. Bus. Stud., 32, 705, 10.1057/palgrave.jibs.8490991 Petrasek Salomon, 2012, Institutional distance and local isomorphism strategy, J. Int. Bus. Stud., 43, 343, 10.1057/jibs.2012.3 Schmidt, 2009, Liability of foreignness as a barrier to knowledge spillovers: lost in translation?, J. Int. Manag., 15, 460, 10.1016/j.intman.2009.03.003 Sofka, 2008, Regional economic stress as moderator of liability of foreignness, J. Int. Manag., 14, 155, 10.1016/j.intman.2008.01.002 Tabellini, 2008, The scope of cooperation, Q. J. Econ., 123, 905, 10.1162/qjec.2008.123.3.905 Tesar, 1995, Home bias and high turnover, J. Int. Money Financ., 14, 467, 10.1016/0261-5606(95)00023-8 Torstila, 2001, The distribution of fees within the IPO syndicate, Financ. Manag., 30, 10.2307/3666257 Whitley, 1992 Xu, 2002, Institutional distance and the multinational enterprise, Acad. Manag. Rev., 27, 608, 10.2307/4134406 Yasuda, 2005, Do bank relationships affect the firm's underwriter choice in the corporate-bond underwriting market?, J. Financ., LX, 10.1111/j.1540-6261.2005.00761.x Zaheer, 1995, Overcoming the liability of foreignness, Acad. Manag. J., 38, 341, 10.2307/256683 Zaheer, 2002, The liability of foreignness, redux: a commentary, J. Int. Manag., 8, 351, 10.1016/S1075-4253(02)00070-4 Zaheer, 1997, The dynamics of the liability of foreignness: a global study of survival in financial services, Strateg. Manag. J., 18, 439, 10.1002/(SICI)1097-0266(199706)18:6<439::AID-SMJ884>3.0.CO;2-Y Zaheer, 1997, Country effects on information seeking in global electronic networks, J. Int. Bus. Stud., 28, 77, 10.1057/palgrave.jibs.8490094 Zhu, 2014, Cultural distance and bond pricing: evidence in the Yankee and rule 144a bond markets, J. Financ. Res., 37, 357, 10.1111/jfir.12040 Zingales, 2015, The “cultural revolution” in finance, J. Financ. Econ., 117, 1, 10.1016/j.jfineco.2015.05.006