scholarly journals Cross-border buyout pricing

2020 ◽  
Author(s):  
Benjamin Hammer ◽  
Nils Janssen ◽  
Bernhard Schwetzler
Keyword(s):  
Transaction Costs ◽  
Firm Size ◽  
Private Equity ◽  
Large Firm ◽  
Accounting Standards ◽  
Information Production ◽  
Organizational Resources ◽  
Cross Border ◽  
Effective Remedy ◽  
Related Transaction

AbstractUsing a dataset of 1149 global private equity transactions, we find that cross-border buyouts are associated with significantly higher valuation multiples than domestic ones. We attribute this finding to informational disadvantages of foreign acquirers. Consistent with this idea, we find that the spread in valuation multiples narrows when the target operates in a country with high accounting standards, when it was publicly listed prior to the buyout, and when information production is facilitated due to large firm size. Further results suggest that local partnering in a syndicate serves as an effective remedy to avoid adverse pricing effects. The spread in valuation multiples is also less pronounced for large buyout funds, presumably because they draw on sufficient organizational resources to cope with cross-border-related transaction costs.

Implications of uncertainty on firm outsourcing decisions

2006 ◽  
Vol 25 (2) ◽  
pp. 115-125
Author(s):  
David R. King
Keyword(s):  
Transaction Costs ◽  
New Products ◽  
Industry Structure ◽  
Management Research ◽  
Research And Practice ◽  
The Face ◽  
Sourcing Decisions ◽  
Related Transaction

Outsourcing inherently considers what activity needs to reside within a given firm. The difficulty of exchanges between firms in the face of uncertainty affects where work on developing and producing new products is performed. Theory is developed and explored using a case study that explains firm sourcing decisions as a response to uncertainty within the context of industry structure and related transaction costs. Viewing outsourcing broadly results in a better delineation of outsourcing options. Implications for management research and practice are identified.

scholarly journals Transnational Corruption and the Globalized Individual

2017 ◽  
Vol 15 (3) ◽  
pp. 732-753 ◽  
Author(s):  
Alexander Cooley ◽  
J. C. Sharman
Keyword(s):  
Real Estate ◽  
Transaction Costs ◽  
Capital Flows ◽  
Oecd Countries ◽  
Citizenship Rights ◽  
Financial Access ◽  
Key Informants ◽  
Cross Border ◽  
Main Components ◽  
The Individual

We present a new, more transnational, networked perspective on corruption. It is premised on the importance of professional intermediaries who constitute networks facilitating cross-border illicit finance, the blurring of legal and illegal capital flows, and the globalization of the individual via multiple claims of residence and citizenship. This perspective contrasts with notions of corruption as epitomized by direct, unmediated transfers between bribe-givers and bribe-takers, disproportionately a problem of the developing world, and as bounded within national units. We argue that the professionals in major financial centers serve to lower the transaction costs of transnational corruption by senior foreign officials. Wealthy, politically powerful individuals on the margins of the law are increasingly globalized as they secure financial access, physical residence, and citizenship rights in major OECD countries. These trends are evidenced by an analysis of the main components of the relevant transnational networks: banks, shell companies, foreign real estate, and investor citizenship programs, based on extensive interviews with key informants across multiple sites.

scholarly journals Policy-related transaction costs of agricultural policies in Finland

2008 ◽  
Vol 17 (3) ◽  
pp. 193 ◽  
Author(s):  
M. OLLIKAINEN ◽  
J. LANKOSKI ◽  
S. NUUTINEN
Keyword(s):  
Transaction Costs ◽  
Policy Instruments ◽  
Indirect Evidence ◽  
Income Support ◽  
Agricultural Policies ◽  
Buffer Zones ◽  
Support Measures ◽  
Environmental Measures ◽  
Related Transaction ◽  
Environmental Programme

This paper assesses policy-related transaction costs (PRTC) associated with the main agricultural and agri-environmental policy instruments in Finland. We find that area-based income support measures entail low transaction costs as expressed in percent of payments, not only in Finland but also in other European countries. Moreover, transaction costs in the Finnish agri-environmental programme are surprisingly low. Within the agri-environmental programme, transaction costs increase with more targeted and differentiated agri-environmental measures. For the basic mandatory measures, these costs are even lower than the transaction costs for the area-based income support measures. What regards the most differentiated policy measures such as conservation of special biotopes or establishment of riparian buffer zones, transaction costs increase considerably. Combining these findings with the actual targets of the Finnish agricultural policies provides indirect evidence about the impacts of policy instruments and the efficiency of administration in implementing the instruments. For area-based income support measures, the Finnish administration seems to work very efficiently. For water protection targets, enforcement and division of labour within the administration seem to be insufficient.;

Firm size effects on transaction costs

1993 ◽  
Vol 5 (4) ◽  
pp. 283-295 ◽  
Author(s):  
Bart Nooteboom
Keyword(s):  
Transaction Costs ◽  
Firm Size ◽  
Size Effects

IFRS Harmonization and Foreign Direct Investment

2016 ◽  
pp. 31-48 ◽  
Author(s):  
Javier Vidal-García ◽  
Marta Vidal
Keyword(s):  
Foreign Direct Investment ◽  
Financial Reporting ◽  
Direct Investment ◽  
Relevant Literature ◽  
Accounting Standards ◽  
Foreign Direct Investments ◽  
International Accounting Standards ◽  
Reporting Standards ◽  
Financial Reporting Standards ◽  
Cross Border

IFRS refers to International Financial Reporting Standards, which are the guidelines that provide the framework for accounting works. The principles are also known as the International Accounting Standards (IAS). This global financial concept was first introduced in 2001 to equip investors with analyzed accounting statements. In this Chapter we review the relation between IFRS and Foreign Direct Investments (FDIs). We review the relevant literature that analyses the effects on IFRS on FDIs and cross-border acquisitions. The economic literature states that the introduction of IFRS has presented an important increase in FDIs. The evidence shows that IFRS adopting countries attract investments from countries that implemented IFRS and non-IFRS implementing countries.

IFRS Harmonization and Foreign Direct Investment

2020 ◽  
pp. 436-453
Author(s):  
Javier Vidal-García ◽  
Marta Vidal
Keyword(s):  
Foreign Direct Investment ◽  
Financial Reporting ◽  
Direct Investment ◽  
Relevant Literature ◽  
Accounting Standards ◽  
Foreign Direct Investments ◽  
International Accounting Standards ◽  
Reporting Standards ◽  
Financial Reporting Standards ◽  
Cross Border

IFRS refers to International Financial Reporting Standards, which are the guidelines that provide the framework for accounting works. The principles are also known as the International Accounting Standards (IAS). This global financial concept was first introduced in 2001 to equip investors with analyzed accounting statements. In this Chapter we review the relation between IFRS and Foreign Direct Investments (FDIs). We review the relevant literature that analyses the effects on IFRS on FDIs and cross-border acquisitions. The economic literature states that the introduction of IFRS has presented an important increase in FDIs. The evidence shows that IFRS adopting countries attract investments from countries that implemented IFRS and non-IFRS implementing countries.

Cross-Border LBOs, Human Capital, and Proximity: Value Addition through Monitoring in Private Equity Investments

2020 ◽  
pp. 1-41
Author(s):  
Thomas J. Chemmanur ◽  
Tyler J. Hull ◽  
Karthik Krishnan
Keyword(s):  
United States ◽  
Human Capital ◽  
Initial Public Offering ◽  
Private Equity ◽  
The United States ◽  
Efficient Allocation ◽  
Value Addition ◽  
Cross Border ◽  
Target Firms ◽  
Public Offering

We show that cross-border leveraged buyout investments involving U.S. rather than non-U.S. private equity (PE) investors are more likely to have a successful exit (initial public offering or acquisition). Exogenous increases in effective proximity following the signing of “open sky agreements” between the United States and target firms’ home countries increases both the propensity of U.S. PE firms to invest in these firms and the value addition by these investors. We show that such increases in value addition by U.S. PE investors following proximity increases are at least partially due to better monitoring, facilitated by the more efficient allocation of experienced U.S. PE managers to cross-border deals.

Co-operatives in chains: institutional restructuring in the Dutch fruit and vegetable industry

2003 ◽  
Vol 3 (2) ◽  
pp. 95-107 ◽  
Author(s):  
Jos Bijman ◽  
en George Hendrikse
Keyword(s):  
Asymmetric Information ◽  
The Netherlands ◽  
Transaction Costs ◽  
Food Industry ◽  
Fruits And Vegetables ◽  
Fresh Produce ◽  
Fruit And Vegetable ◽  
Market Conditions ◽  
Set Up ◽  
Related Transaction

Co-operatives play a major role in the agricultural and food industry. Co-operatives, by their very nature, are producer-oriented firms. As market conditions for food products have changed in recent decades, the question has been raised of whether co-operatives are still efficient organisations for carrying out transactions with agrifood products? This article addresses this question for the fresh produce industry in the Netherlands. Traditionally, fruits and vegetables were sold through auctions organised by grower-owned co-operatives. In the 1990s several auction co-operatives merged, transformed into marketing co-operatives, and vertically integrated into wholesale. In addition, growers set up many new bargaining associations and marketing co-operatives. These new co-operatives have started crop and variety-specific marketing programmes. For reasons of asymmetric information and investment-related transaction costs several of the new co-operative firms have also included the wholesale function.

Sign in / Sign up

Export Citation Format

Share Document