Cultural communication differences in initial public offering documentation: the case of China

Purpose Written communication differences across cultures can set the tone for effective or disastrous business relationships. Although English has been go-to language in business, managers from different countries significantly differ how they convey firms' information. This study explored these by examining documentation presented foreign corporations as part of their initial public offering (IPO) USA, particularly Chinese firms. Design/methodology/approach work examined cultural-related written communications looking at corporations' descriptions strengths, strategies and challenges included F-1 documents submitted to Securities Exchange Commission (SEC) IPO process. The sample consisted 97 American depositary receipts (ADRs) identified Bank New York Mellon's ADR directory 2003 2015. Findings found that firms other countries' depicting challenges. Research limitations/implications Limitations have do with size. Future research may address this considering markets, not just USA. Originality/value results will be significant potential ADRs investors; must conscious compared market should also aware differences, seem less open sharing information about under spinning operations financial prospects.