Abstract
Shattering the all-time high record of $68.15 billion set by AT&T in April 2000,
Alibaba became the world’s largest IPO, raising $169.4 billion at the New York
Stock Exchange in September 2014. Using this outstanding case, the underlying
drivers for foreign IPO success were explored. Four propositions are elaborated
on: (1) companies choose the capital market with the institutional environment
accommodating their internal characteristics, thereby taking advantage of the
institutional differences between home and host countries to facilitate their
development strategy; and (2) companies’ IPO success is largely driven by the
industry growth potential, fundamentals, and strategic alliances.
Alibaba became the world’s largest IPO, raising $169.4 billion at the New York
Stock Exchange in September 2014. Using this outstanding case, the underlying
drivers for foreign IPO success were explored. Four propositions are elaborated
on: (1) companies choose the capital market with the institutional environment
accommodating their internal characteristics, thereby taking advantage of the
institutional differences between home and host countries to facilitate their
development strategy; and (2) companies’ IPO success is largely driven by the
industry growth potential, fundamentals, and strategic alliances.
| Original language | English |
|---|---|
| Pages (from-to) | 299-322 |
| Journal | Asia Pacific Business Review |
| Volume | 29 |
| Issue number | 2 |
| DOIs | |
| Publication status | Published - 11 Nov 2022 |
Keywords
- Alibaba
- China
- Institutional environment
- overseas IPO