Information Asymmetry and Acquisition Premiums in Domestic and Cross Border M&As in Emerging Markets

2009 ◽  
Author(s):  
PengCheng Zhu ◽  
Vijay M. Jog
Keyword(s):  
Emerging Markets ◽  
Information Asymmetry ◽  
Cross Border

scholarly journals Going Abroad, Friends on Board: Cross-Border Venture Capital and Syndication Strategy in China

SAGE Open ◽  
2021 ◽  
Vol 11 (2) ◽  
pp. 215824402110074
Author(s):  
Zhiyi Qiu ◽  
Rong Chen ◽  
Ye Yang
Keyword(s):  
Empirical Study ◽  
Venture Capital ◽  
Emerging Markets ◽  
Cultural Distance ◽  
Cross Border ◽  
Entry Strategy ◽  
China Mainland ◽  
Entrepreneurial Activities

Cross-border venture capitals (CBVCs) are increasingly prevailing in recent decades, inter alia in emerging markets like China. The venture capital (VC) firms investing outside their home countries are faced with foreignness which is broadly regarded as liability. The primary aim of this article is to contribute to our understanding how foreignness affects VC’s strategy when entering emerging markets, particularly with respect to the foreignness originated from cultural distance. The data consist of over 5,000 CBVC deals taking place in China mainland from 1988 to 2016. Our empirical study shows that, with foreignness growing, it turns from liability into advantage in the context of CBVCs. We find an inverse U-shape relationship between foreignness and syndication, with VC firm’s reputation as the moderator. Besides, foreign VC firms establish local subsidiary when faced with foreignness, which serves as alternative to syndication. The key contribution of this article is that foreignness turns from liability into advantage in emerging markets, which exerts a curvilinear impact on the entry strategy of VC firms. This study advances the knowledge of foreignness and VC strategy, and sheds new light on entrepreneurial activities in emerging markets.

scholarly journals Increased Regulation and De-Risking Are Impeding Cross-Border Financing in Emerging Markets

10.1596/30374 ◽  
2018 ◽  
Author(s):  
Ariane Volk ◽  
Susan Starnes
Keyword(s):  
Emerging Markets ◽  
Cross Border

Cross-Border E-Commerce Payments

2021 ◽  
pp. 78-97
Author(s):  
Noor Nahar Begum ◽  
Md Masudul Hassan
Keyword(s):  
Emerging Markets ◽  
National Security ◽  
Economic Life ◽  
Rapid Expansion ◽  
The Internet ◽  
Factors Affecting ◽  
Cross Border ◽  
Doing Business ◽  
The World ◽  
Internet Connections

The rapid expansion of the internet provides the world great achievements both in social and economic life. E-commerce has become one of the serenest ways of doing business and has a persuasive impact on the economy. It is the set of transactions that have been conducted through internet connections and computer networks. This chapter aims to look at the cross-border e-commerce payments. Specially, the chapter has focused on the trends in e-commerce payments, methods of online payments, effects of cross-border e-commerce, factors affecting cross-border e-commerce payments, friction of cross-border e-commerce system, drivers and impediments of cross-border e-commerce, growth of cross-border e-commerce in emerging markets. Moreover, this chapter shows how information has become the blood of e-commerce. It has extensive effects on the economy, society, and indeed national security.

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 Disclosure Frequency, Information Environment, and Cost of Capital under Regulation Fair Disclosure in the Korean Market

2020 ◽  
Vol 12 (14) ◽  
pp. 5856
Author(s):  
Hoshik Shim
Keyword(s):  
Emerging Markets ◽  
Information Asymmetry ◽  
Information Leakage ◽  
Equity Capital ◽  
Information Environment ◽  
Price Ratio ◽  
Corporate Disclosure ◽  
Regulation Fair Disclosure ◽  
Fair Disclosure ◽  
Korean Market

Disclosure policy contributes to improve sustainable corporate information environment by mitigating information asymmetry surrounding companies. Economic theories generally support that more disclosures reduce the level of information asymmetry, increase stock liquidity, and thus decrease the costs of equity capital. However, the effect of corporate disclosure in emerging markets is not clearly predictable because of the potential information leakage prior to disclosure. Considering this issue, this study focuses on the Regulation Fair Disclosure which prohibits selective disclosure. Using the earnings-to-price ratio as a proxy of the costs of equity, the study finds that disclosure frequency is negatively related to the cost of equity capital. However, I do not find evidence that disclosure is negatively related to the implied costs of equity capital (ICOE). The results of the quintile analysis suggest that this inconsistency is attributable to the better information environment of the ICOE sample. The findings of this study have implications for disclosure regulations in emerging markets, given that the existing literature casts doubt on the effectiveness of corporate disclosure in such markets.

Failure to Complete Cross-Border M&As: “To” vs. “From” Emerging Markets

2016 ◽  
Vol 47 (9) ◽  
pp. 1077-1105 ◽  
Author(s):  
Chenxi Zhou ◽  
Jinhong Xie ◽  
Qi Wang
Keyword(s):  
Emerging Markets ◽  
Cross Border
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