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-level uncertainty and imperfect information over their life cycle. We find that firms make non-negligible and positively correlated … informed. Moreover, young firms tend to wait long before entering or exiting the market faced with high uncertainty about their …
Persistent link: https://www.econbiz.de/10012258487
This paper analyzes the firm's choice between serving a foreign market through exports or foreign affiliate sales in an environment characterized by country speci c shocks to the cost of production. Our model predicts that country pairs with less correlated output fluctuations trade more,...
Persistent link: https://www.econbiz.de/10013133331
existing empirical results in the domain of joint ventures. The results show that technological uncertainty promotes the … formation of joint ventures. Moreover, we find an ambiguous effect of technological uncertainty on the expected duration of …
Persistent link: https://www.econbiz.de/10012707439
We develop a hierarchical model of real option entry mode choices under environmental uncertainty and test predictions …
Persistent link: https://www.econbiz.de/10013034089
Using firm and industry data, we establish two facts: (i) Uncertainty about demand conditions not only reduces export …
Persistent link: https://www.econbiz.de/10011547934
the effect of uncertainty on the decision of a firm to export considering the different types of uncertainty faced by the …-specific uncertainty discourages risk-averse firms from participating in foreign markets more than risk-taking firms. One possible …-specific uncertainty increases. Second, we find that risk-averse firms are less likely to decrease their export market participation when …
Persistent link: https://www.econbiz.de/10012984232
Using firm and industry data, we establish two facts: (i) Uncertainty about demand conditions not only reduces export …
Persistent link: https://www.econbiz.de/10013315484
The impact of shocks in dynamic environments depends on how forward-looking agents anticipate the path of future fundamentals that shape their decisions. We incorporate flexible beliefs about future fundamentals in a general class of dynamic spatial models, allowing beliefs to be evolving,...
Persistent link: https://www.econbiz.de/10014322891
The paper analyzes the interactions between the precision of information, trade and welfare within a decision framework of an exporting firm. Information in a financial market is described in terms of a publicly observable signal. With higher transparency, the signal conveys more precise...
Persistent link: https://www.econbiz.de/10009228937
The paper examines the economic role of market transparency on the decision problems of an international firm. Transparency is described in terms of the informativeness of a publicly observable signal. With higher transparency, the signal conveys more precise information about the random foreign...
Persistent link: https://www.econbiz.de/10009229027