Abstract
In this article, we contribute to international IPO research on technology and institutions by investigating the relationship between digital strategic intents in initial public offering (IPO) prospectuses and the performance of foreign IPO firms going public in the United States (US). Despite the expectation of this foreign listing activity to convey digital quality, our theory and results suggest the digital adoption-use gap on both the firm and institutional level to create an uncertain digital diffusion process, an investment environment conveying low transparency, and a resulting IPO discount. We further explore contingencies of the chief executive officer’s (CEO) and board of directors’ technology expertise, investigating interrelationships among technology, institutions, upper echelon and foreign IPO performance. Considering uncertainties carried by the digital adoption-use gap, we find both contingencies to be negative moderators.
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