Contracting Costs and Information Asymmetry Reduction in Cross-Border M&A

2011 ◽  
Vol 48 (3) ◽  
pp. 568-590 ◽  
Author(s):  
Kevin K. Boeh
Keyword(s):  
Information Asymmetry ◽  
Cross Border ◽  
Contracting Costs

Part 2 Specific Issues of Arbitration in Brazil, 15 Post M&A Arbitration

2020 ◽  
Author(s):  
Ferro Marcelo Roberto ◽  
de Souza Antonio Pedro Garcia
Keyword(s):  
Mergers And Acquisitions ◽  
Information Asymmetry ◽  
Dispute Resolution ◽  
Common Law ◽  
Cross Border ◽  
Fertile Ground ◽  
Legal Regimes ◽  
Target Company ◽  
The Common

This chapter addresses post-mergers and acquisitions (M&A) arbitration. M&A transactions provide fertile ground for litigation. These complex transactions usually give rise to a significant level of information asymmetry between the parties regarding the target company. Buyer and seller harbour opposing interests concerning the sale value. Representations and warranties, as well as the allocation of risk among parties, although aimed at facilitating the closing of the transaction, also frequently create tension and give rise to dissonant expectations during the post-closing phase. Cross-border M&A transactions add even more layers of complexity given the different business cultures and legal regimes involved. Even though M&A deals have established standard global commercial practices, which follow the common law framework, they still raise a series of challenges for parties, stakeholders, and legal advisors, generating all types of post-closing disputes. Although there are several means of dispute resolution, M&A parties have reliably chosen arbitration as a method for resolving their disputes in Brazil. The chapter then looks at the issues that most frequently feature in the arbitration of international M&A disputes in Brazil.

scholarly journals A comparison of earnings management between domestic and cross-border mergers.

2010 ◽  
Vol 7 (4) ◽  
pp. 19-33
Author(s):  
Amy Yueh-Fang Ho
Keyword(s):  
Asymmetric Information ◽  
Mergers And Acquisitions ◽  
Earnings Management ◽  
Information Asymmetry ◽  
Discretionary Accruals ◽  
Informational Asymmetry ◽  
Empirical Results ◽  
Cross Border ◽  
Acquiring Firms ◽  
International Mergers

This study examines how U.S. acquiring firms managed their earnings by means of discretionary accruals prior to the announcement of stock-for-stock domestic and cross-border mergers during the period 1980 to 2002. The objective of this study is to determine whether earnings management is exacerbated in cross-border mergers according to the informational asymmetry hypothesis. The results show that that acquiring firms tend to manage earnings upward prior to stock swap domestic takeovers. In addition, the results reveal some evidence of earnings management prior to stock swap cross-border takeovers. However, the empirical results exhibit no significant distinction in earnings management between the domestic and cross-border mergers. Despite the possible existence of asymmetric information associated with cross-border takeover activities, the international mergers and acquisitions do not facilitate managers to engage in more aggressive earnings management. The findings suggest that the higher degree of information asymmetry in cross-border mergers does not contribute to a higher degree of earnings management.

scholarly journals Modern mediators: intermediaries’ informational roles in sourcing from China

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Yuan Virtanen ◽  
Asta Salmi ◽  
Xiao Qin
Keyword(s):  
Information Asymmetry ◽  
Qualitative Data ◽  
Global Sourcing ◽  
Global Business ◽  
Content Type ◽  
Business Context ◽  
Scientific Debate ◽  
Cross Border ◽  
Institutional Contexts ◽  
Supply Risks

Purpose Sourcing intermediaries, commonly known as agents or trading companies, represent a useful organisational solution for assisting companies to manage supply risks and to overcome the liability of foreignness. However, the landscape of global business is experiencing rapid and fundamental changes, which leads us to ask whether intermediaries will continue to play a role in global sourcing. This paper aims to understand how sourcing intermediaries ensure a lasting position in the changing setting of global sourcing and information sharing. Design/methodology/approach This paper investigates the operations of both Chinese and Nordic (Finnish and Swedish) intermediaries in sourcing from China by analysing qualitative data collected over a period of four years. Findings Through the lens of information asymmetry, this paper identifies four distinct informational roles that are used by intermediaries to reduce information asymmetry between suppliers and buyers located in different countries. The paper also examines intermediaries’ signalling activities under these roles in a cross-border triad. Originality/value The paper contributes to the scientific debate on the usefulness of intermediaries by underlining intermediaries’ informational advantage, which provides a new explanation for the survival of intermediaries in a rapidly changing business context. Additionally, this study contributes to research on intermediation strategies by empirically examining both Chinese and Western intermediaries, highlighting the importance of institutional contexts in affecting intermediaries’ informational roles.

Stress Testing, Transparency, and Uncertainty in European Banking

2014 ◽  
pp. 520-544 ◽  
Author(s):  
Rym Ayadi ◽  
Willem Pieter De Groen
Keyword(s):  
Early Detection ◽  
Information Asymmetry ◽  
Stress Testing ◽  
Business Models ◽  
Global Financial Crisis ◽  
Stress Tests ◽  
Market Returns ◽  
Cross Border ◽  
Information Gap ◽  
European Banking

In the aftermath of the 2007–2009 global financial crisis EU regulators and supervisors attempted to restore the confidence of still fragile financial system. To allow early detection of ailing banks, enhance transparency, and decrease uncertainty of information asymmetry between market players, supervisors disclosed the results of stress tests to breach the information gap in the market. Between 2009 and 2013 the Committee of European Banking Supervisors (CEBS) and the European Banking Authority (EBA) performed and disclosed results on stress tests, capital, and transparency exercises. Using 572 observations of listed banks subject to six cross-border stress tests exercises in Europe, this event study finds that the announcements of the test itself, methodology, and results were informative at aggregated level and led to significant positive market returns. In turn, the exercises were noninformative for the identification of viable and nonviable banks and not sensitive to the business models of the participating banks.

scholarly journals Research on the Information Tracing Model for Cross-border E-commerce Products based on Blockchain

2021 ◽  
Vol 235 ◽  
pp. 03018
Author(s):  
Zheng Hua ◽  
Keran Be ◽  
Qinwen Shi
Keyword(s):  
Supply Chain ◽  
Information Asymmetry ◽  
Product Information ◽  
Asymmetry Information ◽  
Cross Border ◽  
Smart Contract ◽  
Regulatory Cost ◽  
Fast Development ◽  
Effective Role ◽  
Information Tracing

Information asymmetry, information island, high regulatory cost, etc., emerge from the fast development of cross-border e-commerce in China, for which the blockchain, with its capabilities in information sharing, information traceability, smart contract, and so on, can play an effective role in product information tracing. Based on blockchain, this paper builds the product information tracing model using information chains of two different degrees of openness. The model includes the three major bodies of cross-border e-commerce—the supply chain alliance, the consumers and the regulatory departments, so as to produce information tracing, ensure information authenticity and integrity, and be applicable to all kinds of e-commerce platforms.

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