The Dark-Side Effects of Creditor Rights: Evidence from Capital Structure and Product Market Interactions

2017 ◽  
Author(s):  
Sadok El Ghoul ◽  
Omrane Guedhami ◽  
Chuck C.Y. Kwok ◽  
Ying Zheng
Keyword(s):  
Side Effects ◽  
Capital Structure ◽  
Product Market ◽  
Dark Side ◽  
Creditor Rights ◽  
Market Interactions

Blockchain as a governance mechanism for tackling dark side effects in interorganizational relationships

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Debi P. Mishra ◽  
Rasleen K. Kukreja ◽  
Arun S. Mishra
Keyword(s):  
Side Effects ◽  
Textual Analysis ◽  
Interorganizational Relationships ◽  
Dark Side ◽  
Decision Framework ◽  
Interorganizational Relationship ◽  
Content Type ◽  
Expert Opinions ◽  
Ex Post ◽  
Research Propositions

Purpose This paper aims to investigate how the emerging blockchain technology can tackle dark side or dysfunctional effects at different stages of the interorganizational relationship life cycle. The rationale for this study stems from the somewhat paradoxical causes of dysfunctional effects. In particular, concepts such as trust and cooperation that typically result in positive relationship outcomes may also lead to negative effects under certain conditions. This contradiction creates a governance headache for organizations in their quest for initiating, developing, maintaining and enhancing efficient interorganizational relationships. Design/methodology/approach The study draws upon multiple organizational theories (agency, signaling, transaction cost, population ecology, institutional) and develops a conceptual understanding of how blockchain can serve as a safeguard for tackling dark side effects in interorganizational relationships. Primarily, the paper outlines a set of research propositions that provides a platform for developing an actionable managerial decision framework. In addition, the authors conduct an automated textual analysis of qualitative blockchain expert opinion using the ALCESTE software and uncover salient themes about blockchain governance. Findings The blockchain ledger distributes trust among participants and keeps dark side effects at bay. Hence, blockchain can transform conventional approaches for handling dark side effects into value creating activities. The results of an automated textual analysis on a corpus of expert opinions provides preliminary support for several aspects of blockchain governance. Furthermore, the study articulates a decision framework that managers can use for optimal relationship governance and identifies several areas for future research. Research limitations/implications This paper is conceptual in nature and draws upon multiple theoretical perspectives to outline a set of research propositions. Thus, lack of empirical testing is a current limitation. However, the findings from an automated textual analysis of expert opinions provide exploratory but encouraging support for the power of blockchain to tackle dark side effects. Practical implications Managers can deploy blockchain creatively while selecting interorganizational relationship partners. For example, provenance issues in organizations’ supply chains can be efficiently managed using blockchain. Likewise, organizations may also create efficient learning around blockchain to gain efficiencies in relationship management. Originality/value Conventional approaches for managing dark side effects in interorganizational relationships rely mainly on ex post governance strategies. By contrast, this paper supplements the extant approach by discussing ex ante strategies that can be deployed at different stages of the interorganizational relationship cycle, e.g. initiation, maintenance/development and termination to better address dark side effects.

Capital Structure, Product Market Dynamics, and the Boundaries of the Firm

2014 ◽  
Vol 60 (12) ◽  
pp. 2971-2993 ◽  
Author(s):  
Dirk Hackbarth ◽  
Richmond Mathews ◽  
David Robinson
Keyword(s):  
Capital Structure ◽  
Product Market ◽  
Market Dynamics ◽  
Boundaries Of The Firm

Financial Strength and Product Market Competition: Evidence from Asbestos Litigation

2011 ◽  
Vol 47 (1) ◽  
pp. 179-211 ◽  
Author(s):  
Charles J. Hadlock ◽  
Ramana Sonti
Keyword(s):  
Market Competition ◽  
Product Market ◽  
Product Market Competition ◽  
Market Reactions ◽  
General Hypothesis ◽  
Market Interactions ◽  
Exogenous Shocks ◽  
Financial Strength ◽  
Liability Structure

AbstractWe study the role of financial strength on product market competition by examining exogenous shocks to a firm’s liability structure arising from asbestos litigation. We find that exogenous increases (decreases) in asbestos liabilities are interpreted by the market as negative (positive) news for a firm’s close competitors. These reactions are magnified in events in which one asbestos-tainted firm goes bankrupt and other asbestos-tainted stocks fall on the news of the bankruptcy. For smaller competitors, market reactions are more pronounced in more concentrated industries. Our findings support the general hypothesis that increases in fixed liabilities lead to more aggressive product market interactions.

scholarly journals "SOFT POWER": THE DARK SIDE (ON THE CASE OF GERMANY)

2016 ◽  
pp. 144-153
Author(s):  
M. M. Lebedeva ◽  
L. R. Rustamova ◽  
M. V. Sharko
Keyword(s):  
Side Effects ◽  
Soft Power ◽  
Public Diplomacy ◽  
Dark Side ◽  
Positive Image ◽  
Governmental Organizations ◽  
Non Governmental Organizations

Despite of the fact that numerous researches on the concept of soft power were conducted by Russian as well as by foreign scholars, negative aspects of soft power, especially concerning actors that implement it, were almost disregarded. This article focuses on possible adverse consequences for such actors and illustrates them with the example of Germany that intensively forms its attractive image in the international arena. The authors affirm in particular that actors should form their comprehensive positive image rather than attractiveness of distinct spheres and features. They should also consider side-effects of soft power and harmonize NGO's activities in implementation of this policy. The latter is becoming more relevant against the background of broader application of soft power through public diplomacy with the help of non-governmental organizations. In addition, the article emphasizes the necessity of further theoretical and empirical researches on the issue.

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