Information asymmetry and the effect of financial openness on firm growth and wage in emerging markets

Park, Haehean; Lee, Po-sang; Park, Yun W.

doi:10.1016/j.iref.2020.06.004

Cited by 7 publications

(2 citation statements)

References 36 publications

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“…This paper focuses on the third point. to this end, Park and colleagues [60] observed that large firms involved in cross-border trade have more access to external financing compared to smaller firms in markets where information asymmetry is low moderate. Also, adverse selection has a significant influence on the trading of tokens in the initial coin offering (ICO) market [61].…”

Section: Credit Creation and Financial Inclusionmentioning

confidence: 99%

A critical review of information asymmetry in the business cycle: How digital ledger technology can transform and sustain the business cycle

Susan

Natu

2022

PLOS Sustain Transform

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Distributed ledger technology (DLT) is a disruptive technology with the potential to reengineer the entire trading cycle by alleviating inefficiencies such as time lags, multiple record keeping, human errors, and transparency common with the traditional trade cycle. This study evaluates the potential benefits of DLT in mitigating information asymmetry in trading relationships and how a DLT model can be deployed to revamp the trading process. We find that information friction results from differences in stakeholder preferences by identifying and categorizing information friction into 4 groups through a review of key studies in leading management journals. This finding aligns with conclusions reached in scientific research that the benefits of DLT prevail in markets with imperfect information. In addition, we illustrate the potential benefits of DLT in mitigating inefficiencies in trading relationships resulting from information asymmetry. The article concludes with a word of caution for potential users to take gradual steps of adoption to keep pace with changing technology so as not to become laggards.

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Section: Credit Creation and Financial Inclusionmentioning

confidence: 99%

A critical review of information asymmetry in the business cycle: How digital ledger technology can transform and sustain the business cycle

Susan

Natu

2022

PLOS Sustain Transform

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“…Based on the literature, few studies have examined the moderating role of certain factors on the CSR-CFP nexus. These studies focused on firm-level (firm size [37], CSR awareness [38] and quality management [8]) and economic-level (economic conditions [33], oil prices [39]) conditions, geographical diversification [40] and innovation [41] factors. However, there has been no research concentrating on the moderating effect of governance practices (governance structure and institutional quality).…”

Section: Introductionmentioning

confidence: 99%

The Nonlinear Relationship between Corporate Social Responsibility and Hospitality and Tourism Corporate Financial Performance: Does Governance Matter?

Attia,

Tobar,

Fouad

et al. 2023

Sustainability

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This paper is interested in examining the impact of corporate social responsibility and governance on corporate financial performance. We selected a panel of 141 worldwide hospitality and tourism firms spanning the period 2012–2018 to assess the effects (direct and indirect) of corporate social responsibility and governance on corporate financial performance (measured in terms of return on assets, return on equity and Tobin’s Q). Although a few studies examine the moderating effect of certain factors, our study fills this gap by examining the moderating effect of governance practices (governance structure and institutional quality) on the nonlinear relationship between corporate social responsibility and corporate financial performance. The results of the system generalized method of moments suggest the existence of a nonlinear, U-shaped relationship between corporate social responsibility and corporate financial performance (return on equity and Tobin’s Q). This nonlinearity is confirmed for corporate social responsibility and corporate financial performance (measured by return on assets). However, this relationship is inverted-U-shaped. Furthermore, our results also show that lagged corporate social responsibility, governance practices, firm-specific variables and macroeconomic variables affect current corporate financial performance. The predictions of stakeholders and agency theories are validated. Given our results, it is recommended that policy makers trade off the benefits and costs of corporate social responsibility and take appropriate financial strategies, thus enabling value creation for their companies.

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Capital market opening and corporate environmental performance: Empirical evidence from China

Zhang

2023

Finance Research Letters

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Information asymmetry and the effect of financial openness on firm growth and wage in emerging markets

Cited by 7 publications

References 36 publications

A critical review of information asymmetry in the business cycle: How digital ledger technology can transform and sustain the business cycle

A critical review of information asymmetry in the business cycle: How digital ledger technology can transform and sustain the business cycle

The Nonlinear Relationship between Corporate Social Responsibility and Hospitality and Tourism Corporate Financial Performance: Does Governance Matter?

Capital market opening and corporate environmental performance: Empirical evidence from China

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