Overcoming the liability of foreignness in US capital markets: the case of Alibaba and Coupang

Pesque-Cela, V, Li, J and Kim, YK (2022) Overcoming the liability of foreignness in US capital markets: the case of Alibaba and Coupang. Asia Pacific Business Review. ISSN 1360-2381

Preview

Text APBR_(Accepted 2 Sept 2022).pdf - Accepted Version Available under License Creative Commons Attribution Non-commercial No Derivatives. Download (828kB) | Preview

Abstract

Drawing on signalling theory and using the cases of Alibaba and Coupang, we investigate whether and how venture capital-backed companies from emerging markets use CSR to overcome the liability of foreignness when going public in the US. Our findings suggest that such firms strategically increase their CSR activities prior to their IPO in order to signal legitimacy to investors. They also suggest that firms with both strong and weak CSR signalling strategies (as measured by signal cost, frequency and consistency) are equally likely to have successful IPOs when they are backed by reputable venture capital firms.

Item Type:	Article
Uncontrolled Keywords:	1503 Business and Management; Business & Management
Subjects:	H Social Sciences > HG Finance
Divisions:	Business and Management (from Sep 19)
Publisher:	Taylor & Francis
Date of acceptance:	2 September 2022
Date of first compliant Open Access:	21 March 2024
Date Deposited:	04 Nov 2022 12:35
Last Modified:	21 Mar 2024 00:50
DOI or ID number:	10.1080/13602381.2022.2121522
URI:	https://ljmu-9.eprints-hosting.org/id/eprint/18025

View Item