Information economics offers a complementary framework relative to transaction cost economics to study corporate strategy. Nevertheless, the existing theory suffers from the lack of an argument to differentiate various remedies for contractual hazards when multiple remedies are available. We...

This paper examines acquisitions of firms after they have undergone initial public offerings (IPOs). Combining insights from information economics with recent research on geographic distance in various market settings, the analysis investigates whether the presence or absence of different...

This paper investigates strategic alliances and initial public offerings (IPOs) as factors that potentially mitigate the risk of adverse selection in mergers and acquisitions. It is hypothesized that prior alliances between acquirers and targets as well as IPOs undertaken by targets reduce...

This paper extends information economics in corporate strategy and organizational governance research by using signaling theory to explain firms' market entry modes. We exploit features of the IPO context to investigate how signals on newly-public firms shape other companies' governance choices...

How does language friction affect alliance formation? Language friction is a form of cultural friction arising from structural differences in the respective languages used by potential partners to reason and solve problems together. A little language friction may prompt partners to rethink...