Information asymmetry and international strategic alliances

Do joint ventures and strategic alliances create value for bondholders?

“…13 Similarly, foreign dummy is a dummy variable that takes the value of one if at least one participating firm in the cooperative agreement is a non-U.S. firm. Qiu (2010) and Owen and Yawson (2013) suggest a strong rationale for forming a cross-border cooperative agreement: firms wishing to enter a foreign market can reduce the regulatory and political risks when collaborating with local companies in the corresponding foreign market. We follow Carpenter and Petersen (2002) in identifying high-tech industries.…”

Evolution of the Chinese Industry-University-Research Collaborative Innovation System

“…On the one hand, this indicates that, in the current process of IURCI in China, the universities and research institutions side creates and sends high-value heterogeneity knowledge, which has a fundamental role in promoting innovation capacity. On the other hand, to a certain extent, this confirms that if Chinese universities and research centers could face knowledge-oriented industrial demand, enterprises could accurately identify the market value of accepted knowledge, change the discrepancy that exists between technology supply and technology demand, and thereby reduce its dependency on R&D configuration, while, at the same time, shortening the innovation cycle and avoiding the issues such as information asymmetry and transaction costs that may arise during collaborative innovation [42][43][44]. Figure 7 illustrates that when innovation capacity and knowledge transfer are more prominent and R&D configuration is lower, variables of the Chinese IURCI could promote each other by interaction, but the growth rate is relatively small, indicating that relying solely on knowledge transfer to promote innovation capacity is not effective.…”

“…Figures 5 and 6 both show that the innovation capacity and R&D configuration of the Chinese IURCI system can in a short period of time produce significant synergies and promote each other, indicating that China's current IURCI development still requires a lot of resources investment as the primary means to enhance innovation capability. But when R&D configuration is high, the result of innovation capacity evolution [38] is lower than that when knowledge transfer is relatively high, which gives high values of innovation evolution [42]. On the one hand, this indicates that, in the current process of IURCI in China, the universities and research institutions side creates and sends high-value heterogeneity knowledge, which has a fundamental role in promoting innovation capacity.…”

Tax Knowledge Diffusion via Strategic Alliances

“…However, if tax planning were an endogenous choice based on having high effective tax rates prior to engaging in tax planning (Dyreng, Hanlon, and Maydew, 2008), tax planning research would generally face endogeneity concerns. Additionally, prior research indicates that firms consider expected high taxation, measured as country-level corporate income tax rate, in the host country of a strategic alliance to be acceptable (i.e., positively associated) when forming an international network (Owen and Yawson, 2013). For further mitigation purposes, we conduct a thorough descriptive analysis.…”