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

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.

Different firm size effects on wages for supervisors and workers

2004 ◽  
Vol 84 (2) ◽  
pp. 225-230 ◽  
Author(s):  
Kieron J Meagher ◽  
Hugh Wilson
Keyword(s):  
Firm Size ◽  
Size Effects

scholarly journals Firm Size, Capital Structure And Earnings Announcement Price Response

2011 ◽  
Vol 24 (1) ◽  
Author(s):  
Joseph H. Anthony
Keyword(s):  
Capital Structure ◽  
Firm Size ◽  
Size Effects ◽  
Market Value ◽  
Prior Work ◽  
Font Size ◽  
Book Value ◽  
Quarterly Earnings ◽  
Price Response ◽  
Outstanding Debt

<p class="MsoNormal" style="text-align: justify; margin: 0in 0.5in 0pt;"><span style="font-size: 10pt;"><span style="font-family: Times New Roman;">The existence of firm size effects is well documented in the accounting and finance literatures. One stream of this research interprets firm size as a proxy for the amount of information available about the firm. This paper extends prior work in this area and demonstrates that the significance of the size effect is increased substantially by considering information demands of both debt and equity investors. A size proxy that includes the book value of outstanding debt is more highly associated with returns surrounding annual and quarterly earnings announcements than a measure based solely on the market value of common equity.</span></span></p>

scholarly journals How does opportunistic behavior influence firm size? An evolutionary approach to organizational behavior

2010 ◽  
Vol 7 (1) ◽  
pp. 1-21 ◽  
Author(s):  
CHRISTIAN CORDES ◽  
PETER RICHERSON ◽  
RICHARD MCELREATH ◽  
PONTUS STRIMLING
Keyword(s):  
Organizational Behavior ◽  
Transaction Costs ◽  
Firm Size ◽  
Cultural Transmission ◽  
Evolutionary Approach ◽  
Business Leader ◽  
Opportunistic Behavior ◽  
Socialization Processes ◽  
Better Than

Abstract:This paper relates firm size and opportunism by showing that, given certain behavioural dispositions of humans, the size of a profit-maximizing firm can be determined by cognitive aspects underlying firm-internal cultural transmission processes. We argue that what firms do better than markets – besides economizing on transaction costs – is to establish a cooperative regime among its employees that keeps in check opportunism. A model depicts the outstanding role of the entrepreneur or business leader in firm-internal socialization processes and the evolution of corporate cultures. We show that high opportunism-related costs are a reason for keeping firms’ size small.

Firm size effects in trade credit supply and demand

2018 ◽  
Vol 93 ◽  
pp. 1-20 ◽  
Author(s):  
Jochen Lawrenz ◽  
Julia Oberndorfer
Keyword(s):  
Firm Size ◽  
Size Effects ◽  
Trade Credit ◽  
Supply And Demand ◽  
Credit Supply
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