What explains Alibaba’s miraculous IPO success on the New York Stock Exchange?

Kailei Wei; Libo Xiao; Yang Fang; Chunxia Jiang

doi:10.1080/13602381.2022.2143640

What explains Alibaba’s miraculous IPO success on the New York Stock Exchange?

Kailei Wei^* (Corresponding Author), Libo Xiao, Yang Fang, Chunxia Jiang^* (Corresponding Author)

^*Corresponding author for this work

Accountancy & Finance, Finance

Research output: Contribution to journal › Article › peer-review

1 Citation (Scopus)

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.

Original language	English
Pages (from-to)	299-322
Number of pages	24
Journal	Asia Pacific Business Review
Volume	29
Issue number	2
Early online date	11 Nov 2022
DOIs	https://doi.org/10.1080/13602381.2022.2143640
Publication status	Published - Apr 2023

Bibliographical note

Funding
This work was supported by the Natural Science Foundation of China under Grant 72173036; the Natural Science Foundation of Hainan Province under Grant 721RC515. The authors are solely responsible for any error or omission herein.

Funding Information:
This work was supported by the National Natural Science Foundation of China under Grant 72173036; the Natural Science Foundation of Hainan Province under Grant 721RC515. The authors are solely responsible for any error or omission herein.

Publisher Copyright:
© 2022 Informa UK Limited, trading as Taylor & Francis Group.

Keywords

Alibaba
China
Institutional environment
overseas IPO
institutional environment

Access to Document

10.1080/13602381.2022.2143640Licence: Unspecified

Cite this

@article{11ccdb7821654b959af6670e3ec040d8,

title = "What explains Alibaba{\textquoteright}s miraculous IPO success on the New York Stock Exchange?",

abstract = "Shattering the all-time high record of $68.15 billion set by AT&T in April 2000,Alibaba became the world{\textquoteright}s largest IPO, raising $169.4 billion at the New YorkStock Exchange in September 2014. Using this outstanding case, the underlyingdrivers for foreign IPO success were explored. Four propositions are elaboratedon: (1) companies choose the capital market with the institutional environmentaccommodating their internal characteristics, thereby taking advantage of theinstitutional differences between home and host countries to facilitate theirdevelopment strategy; and (2) companies{\textquoteright} IPO success is largely driven by theindustry growth potential, fundamentals, and strategic alliances.",

keywords = "Alibaba, China, Institutional environment, overseas IPO, institutional environment",

author = "Kailei Wei and Libo Xiao and Yang Fang and Chunxia Jiang",

note = "Funding This work was supported by the Natural Science Foundation of China under Grant 72173036; the Natural Science Foundation of Hainan Province under Grant 721RC515. The authors are solely responsible for any error or omission herein. Funding Information: This work was supported by the National Natural Science Foundation of China under Grant 72173036; the Natural Science Foundation of Hainan Province under Grant 721RC515. The authors are solely responsible for any error or omission herein. Publisher Copyright: {\textcopyright} 2022 Informa UK Limited, trading as Taylor & Francis Group.",

year = "2023",

month = apr,

doi = "10.1080/13602381.2022.2143640",

language = "English",

volume = "29",

pages = "299--322",

journal = "Asia Pacific Business Review",