Information revelation in the Property Right Theory of the firms

Su, Alice Peng-Ju

doi:10.1016/j.ijindorg.2017.02.004

Cited by 12 publications

(7 citation statements)

References 24 publications

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“…Some authors have studied the role of asymmetric information in hold-up problems and in variants of the Grossman-Hart-Moore approach, which can explain ex post ine¢ciencies (see e.g. Schmitz, 2006;Goltsman, 2011;Goldlücke and Schmitz, 2014;Su, 2017b). 20 Yet, these papers consider uncerti…able information only.…”

Section: Discussionmentioning

confidence: 99%

Contracting under Adverse Selection: Certifiable vs. Uncertifiable Information

Schmitz

2021

SSRN Journal

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The analysis of adverse selection problems in seller-buyer relationships has typically been based on the assumption that private information is uncerti…able, while in practice it may well be certi…able. If a buyer has certi…able private information, he can conceal evidence, but he cannot claim to have information for which he has no evidence, so he has fewer possibilities to misrepresent his information. Nevertheless, we …nd that the expected total surplus can be strictly smaller in the case of certi…able information than in the case of uncerti…able information. This …nding holds when the buyer may have private information with some exogenous probability as well as in the case of opportunistic information gathering, where the buyer can privately decide whether or not to acquire information for strategic reasons.

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Section: Discussionmentioning

confidence: 99%

Contracting under Adverse Selection: Certifiable vs. Uncertifiable Information

Schmitz

2021

SSRN Journal

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“…Agency theory focuses more on shareholders' interest, however, no other party is involved. Su (2017) said that the basic concept of property rights is on property rights held by the asset owner to utilize and give benefit in asset and entitlement to remove the assets. Furthermore, according to this theory, the owner has the freedom to transfer his right to another.…”

Section: Introductionmentioning

confidence: 99%

“…The research is trying to complete the gap of research because anecdotal evidence about the incident decline of a foreign ownership ratio in Indonesia which haven't been researched by researchers previously, especially in Indonesia (Driffield dkk., 2016;Rhee & Wang, 2009;Shaban & James, 2018). Developing literature about foreign ownership structure decline in developing countries tends to be less researched (Areneke et al, 2022;Driffield et al, 2016;Su, 2017;Yildiz, 2021). Therefore, the research is trying to give a different view covered by the property right theory.…”

Section: Introductionmentioning

confidence: 99%

Corporate governance, political connection, and foreign ownership control: The property rights theory perspective

Pranesti

Fajar²,

Larasati³

et al. 2023

JIFA

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Over time, the reduction in foreign ownership in Indonesia has prompted questions about its causes. The country is still perceived to have low corporate governance standards and a high level of political connections. The aim of this study is to investigate whether corporate governance and political connections have an impact on foreign ownership. The study utilized manufacturing company data from 2018 to 2021, comprising 48 companies with 192 observations. The findings of the study indicate that foreign investors tend to decrease their investment in companies with strong corporate governance. The study reveals that a firm with robust corporate governance becomes an attractive target for local investors to acquire ownership. The findings provide evidence of a decrease in the proportion of foreign investors in such companies. Instead, foreign investors continue to view companies with political connections as potential concern for surveillance. This study uses another argument to explain how the structure of foreign ownership in Indonesia uses the property right theory. Policy-making authorities can make policies to support corporate governance arrangements and support to reduce the level of corruption so as to support the investment climate in Indonesia. This research can be used as a new insight to understand how the investment climate is, but has not considered aspects related to environmental and social issues

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“…In Schmitz (2006), an otherwise standard version of the Grossman-Hart-Moore property rights model has been studied where the ex post negotiations take place under asymmetric information, such that ex post ine¢ciencies may occur. 6 More recently, further studies such as Goltsman (2011), Goldlücke and Schmitz (2014), and Su (2017a) have also explored di¤erent aspects of hold-up problems under asymmetric information in private-good contexts.…”

Section: Introductionmentioning

confidence: 99%

Optimal ownership of public goods under asymmetric information

Schmitz

2021

Journal of Public Economics

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Consider two parties who can make non-contractible investments in the provision of a public good. Who should own the physical assets needed to provide the public good? In the literature it has been argued that the party who values the public good most should be the owner, regardless of the investment technologies.Yet, this result has been derived under the assumption of symmetric information.We show that technology matters when the negotiations over the provision of the public good take place under asymmetric information. If party A has a better investment technology, ownership by party A can be optimal even when party B has a larger expected valuation of the public good.

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Information revelation in the Property Right Theory of the firms

Cited by 12 publications

References 24 publications

Contracting under Adverse Selection: Certifiable vs. Uncertifiable Information

Contracting under Adverse Selection: Certifiable vs. Uncertifiable Information

Corporate governance, political connection, and foreign ownership control: The property rights theory perspective

Optimal ownership of public goods under asymmetric information

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