Incomplete Contract, Agency Theory and Ethical Performance: A Synthesis of the Factors Affecting Owners' and Contractors' Performance in the Bidding Construction Process

Abdallah, Abed Al‐Nasser; Darayseh, Musa; Waples, Elaine

doi:10.1177/030630701303800404

Cited by 9 publications

(6 citation statements)

References 22 publications

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“…Commonalities reflect the common variance in the data structure (Abdallah et al, 2013). Table 3 lists the Eigenvalues associated with each linear component (factor) before and after extraction.…”

Section: Research Design and Empirical Resultsmentioning

confidence: 99%

Determinants of merger and acquisition in the banking sector: an empirical study

Darayseh

Alsharari

2022

MEDAR

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Purpose This study aims to determine the factors affecting the merger and acquisition (M&A) process in the United Arab Emirates (UAE) banking sector. It distinguishes between internal and external factors that may motivate M&A activities in the banking sector. Design/methodology/approach This study adopts quantitative research and a survey strategy for data collection. A model was developed using a survey e-mailed to 500 bankers to gather data on the factors affecting the banking sector’s M&A. Findings This study’s findings provide strong empirical evidence for factors extracted by the factor analysis (Income, Growth, Costs, Survival, Diversifications, Security and Risk and Legal), which are important in determining the consolidation process leading to successful M&A in the banking industry. This study also contributes to the business combinations and consolidation literature by explaining the important factors in measuring the bank’s performance during the M&A process. Research limitations/implications Future studies could be directed in many directions. First, the authors extend the study to other GCC countries and examine whether the determinants of banks’ M&A are similar across markets. Second, the authors examine additional nonfinancial bank-specific characteristics, such as management incentives and corporate governance or additional market characteristics. Third, the authors examine the motives for acquisitions of foreign banks by UAE banks and vice versa. There may be much to learn about how acquisition motives are likely to differ. Practical implications The findings can help bank managers know if their banks have developed the same profile or factors similar to typical target banks. The theoretical understanding of the importance of this study in creating an environment of trust that governs the behavior of bankers for both banks will reduce the agency issue. Regarding general management, this study indicates that opportunistic behaviors could interest banks, bankers’ associations, central banks, governments, other financial authorities and policymakers. Therefore, this study paves the way for further investigation of mergers, agency theory and ethics issues. These banks’ owners, managers and regulators were also advised to consider these factors in formulating their policies and processes, given their influence on performance and their ability to manage the relationship between banks and improve the efficiency of the UAE banking sector. Originality/value This study provides new perspectives concerning motives leading financial institutions to M&A owing to banks’ decisions to improve their financial positions, coupled with the need to obey pressures of macro factors such as economic, legal and political systems, government and technology.

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Section: Research Design and Empirical Resultsmentioning

confidence: 99%

Determinants of merger and acquisition in the banking sector: an empirical study

Darayseh

Alsharari

2022

MEDAR

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“…Strategies used to reduce the negative implication of an incomplete contract in PPP projects include changing the form of the contract by a lottery model [29], optimizing the contract by the martingale methods [30], and designing a governmental compensation contract based on game theory [31]. Additionally, some studies in the field of informal institution in PPP projects examined mutual trust [32,33], working relationship [34,35], ethical partnership [36], and social responsibility [37]. Moreover, both formal and informal institutions could be interacted as the form of contractual and relational governance in PPP projects [38][39][40].…”

Section: Behaviours Among Stakeholders In Ppp Projectsmentioning

confidence: 99%

Credit Default of Local Public Sectors in Chinese Government‐Pay PPP Projects: Evidence from Ecological Construction

Yang

Song

Xing

2019

Advances in Civil Engineering

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Credit is regarded as a key factor to maintain the sustainability of cooperation between public authorities and social capitals in Government-Pay Public-Private Partnership (PPP) projects. The credit default of local public sectors has become a formidable force to cause termination in several cases. The study aims to explore the critical conditions and main logics behind opportunistic behaviours through literature analysis. In this research, political performance, fiscal illusion, subjective willingness, and objective limitation are identified as four certain conditions. Additionally, the crisp-set Qualitative Comparative Analysis (csQCA) method is applied to determine the connections between conditions and the credit default in the Chinese Government-Pay PPP projects according to 15 cases from the field of ecological construction. Consequently, two combinations with complete sufficiency leading to severe extent of credit default are categorized. The configuration of political performance and fiscal illusion is dominant, thereby causing severe extent of credit default in the preimplementation link. Correspondingly, the configuration of subjective willingness, objective limitation, and nonpolitical performance is crucial in the implementation and postimplementation links. Moreover, fiscal illusion alone could be totally sufficient to lead to a termination. This research not only enriches the theoretical system on credit default of public authorities in Government-Pay PPP projects but also provides reference for all participants to forecast the potential risks especially the credit default in PPP projects.

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“…In addition, there will be extra cost and time to conduct renegotiation (Bajari et al, 2014). Meanwhile, Abdallah, Darayseh, and Waples, (2013) stated that IC could lead to dispute and conflict. When a dispute occurs in the project, again, extra cost and time will need to be spent for dispute resolution.…”

Section: Problem Statementmentioning

confidence: 99%

Pros And Cons Of Incomplete Contract In Private Finance Initiative (Pfi) Project

Farihah¹,

Fairullazi²,

Khairuddin³

et al. 2019

The European Proceedings of Multidisciplinary Sciences

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A contract is incomplete when it did not clearly spell out among others the parties' responsibilities and duties for all realised contingency and it contain loophole, some provisions being left out, and the wording used contain element of vagueness. Incomplete contract is said to be inevitable especially for projects with lengthy contract period, a lot of risk and/or uncertainty, such as Private Finance Initiative (PFI) projects. IC has both its PROs (positive) and CONs (negative) implications. Flexibility to deal with uncertainty when it arises is the PROs of IC while the CONs are inefficiencies and costs, contract amendment and others. PFI is among the key alternative procurement used in Malaysia. However, there has been criticism about PFI e.g. lopsided contractual agreement, absence of robust and transparent agreement, and vagueness in terms of sustainable element. Based on the issues mentioned, it is therefore, significant to carry out this research to assess the PROs and CONs implications of IC in PFI projects. Research method begin with literature review and followed by two rounds of Modified Delphi method. 18 and 13 panellists involved in the MD. The results from the research have identified eight (8) PROs and six (6) CONs. Findings of the research are significant for the improvement of future PFI project whereby PFI stakeholders can come out with proper action to deal with implications of IC.

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Incomplete Contract, Agency Theory and Ethical Performance: A Synthesis of the Factors Affecting Owners' and Contractors' Performance in the Bidding Construction Process

Cited by 9 publications

References 22 publications

Determinants of merger and acquisition in the banking sector: an empirical study

Determinants of merger and acquisition in the banking sector: an empirical study

Credit Default of Local Public Sectors in Chinese Government‐Pay PPP Projects: Evidence from Ecological Construction

Pros And Cons Of Incomplete Contract In Private Finance Initiative (Pfi) Project

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