Resumen de Financial Implications of Local and Nonlocal Rival Isomorphism: A Signaling Paradox
Stewart Robert Miller, Daniel C. Indro, Malika Richards, Daniel Han Ming Chng
We develop an isomorphism-signaling framework to explain the likelihood of isomorphic behavior (and nonconformity) by a focal firm toward local rivals and nonlocal rivals and then predict financial performance associated with the action. In the presence of asymmetric information, we predict a causal relationship between rival isomorphism and financial performance that reveals a paradox�that is, we theorize and show conditions in which �conforming� reflected by rival isomorphic behavior is a signal that �separates� high-quality from low-quality firms. We consider a firm�s costs and benefits of local and nonlocal rival isomorphism and assert that a firm can signal its quality, which affects financial performance of the equity offering. We test and find support for our hypotheses using a sample of firms raising capital abroad from 1994 to 2005.
