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This paper analyses how entry by an international bank into a developing economy aÞects the credit market equilibrium. It opers a novel explanation of how a foreign entrant overcomes asymmetric information problems, and complements extant hard vs. soft information based theories of credit...
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where the local banks are forced to contract credit. The risk management framework employed by the foreign bank creates a … loans, and therefore, it has a greater risk taking capacity than the acquirer. Thus, competition, and thereby the distortion …
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Policy uncertainty has been documented to have a significant impact on corporate investment decisions. This paper investigates the effect of policy uncertainty on cross-border acquisitions. We find a significant monotonic relationship between the size of the acquired equity stake in a target...
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