HOW INTERNATIONAL COMPETITIVENESS MODERATES THE RELATIONSHIP BETWEEN CORPORATE GOVERNANCE AND SEASONED EQUITY OFFERING UNDERPRICING

Download This Article

Abstract

When a company exhibits favorable management performance, investors may have higher intention to purchase its stock at a premium price; the company may also make more desirable decisions in international expansion, attain higher international competitiveness, win the preference of investors, and thus exhibit a higher stock price, which results in higher seasoned equity offering (SEO) underpricing. Therefore, international competitiveness possibly plays a crucial moderating role between corporate governance and SEO underpricing. The empirical results of this study show that compared with government-controlled companies, international competitiveness strengthens the relationship of SEO underpricing with one-family-controlled companies, two-or-more family-controlled companies, and manager-controlled companies. Accordingly, companies should improve their international competitiveness and conduct favorable corporate management to elicit the investment intention of market participants worldwide.

Keywords: International Competitiveness, Corporate Governance, Seasoned Equity Offering Underpricing, Moderating Effect

Received: 7.04.2017

Accepted: 19.06.2017

How to cite this paper: Shiue, F. J., & Yen, Y. Y. (2017). How international competitiveness moderates the relationship between corporate governance and seasoned equity offering underpricing. Corporate Ownership & Control, 14(4-1), 314-327. https://doi.org/10.22495/cocv14i4c1art13