Foreign Equity Valuations of Emerging Market Firms: The Effects of Institutional Distance and Information Spillovers
研究了新兴市场企业在全球资本市场融资时，制度距离对外国股权估值的非线性影响，并发现国内资本市场和国际产品市场的信息溢出会调节这一关系。
Abstract This paper investigates the so far unexplored theoretical tension associated with foreign investor valuations of emerging market firms (EMFs) that tap into global capital markets. One line of argument expands the liability of foreignness perspective into the capital market domain where a foreign firm faces legitimacy and unfamiliarity issues. In contrast, there is recognition of the benefits to global investors in EMFs associated with geographic portfolio diversification. Our core premise is that EMFs face a cost–benefit trade-off associated with the extent of institutional distance when venturing abroad in search of financial resources. Based on a theoretical model grounded in institutional theory, we find a curvilinear effect of institutional distance on foreign equity valuations. Furthermore, we show that information spillovers through a focal firm’s domestic capital market and international product market strategies moderate this relationship.