Value creation and value destruction in investor-state dispute arbitration
The result's identifiers
Result code in IS VaVaI
<a href="https://www.isvavai.cz/riv?ss=detail&h=RIV%2F67985998%3A_____%2F22%3A00556777" target="_blank" >RIV/67985998:_____/22:00556777 - isvavai.cz</a>
Result on the web
<a href="https://doi.org/10.1016/j.mulfin.2021.100728" target="_blank" >https://doi.org/10.1016/j.mulfin.2021.100728</a>
DOI - Digital Object Identifier
<a href="http://dx.doi.org/10.1016/j.mulfin.2021.100728" target="_blank" >10.1016/j.mulfin.2021.100728</a>
Alternative languages
Result language
angličtina
Original language name
Value creation and value destruction in investor-state dispute arbitration
Original language description
We investigate whether investor-state arbitration under investment protection treaties is valuable to foreign investors, and whether international arbitration has effects on firm value that are like those seen in domestic litigation. An event study of abnormal returns when claims for arbitration are filed and adjudicated show that firms gain in market value both at the time they file for arbitration and when they receive an award. These gains in value generally exceed the size of the awards, indicating that success in arbitration provides the foreign investor not only monetary compensation but also non-monetary reputational effects that reduce costs of doing business abroad. Stock markets anticipate the outcomes of the arbitration process when claims are filed and when awards are announced. The effects on firm value of domestic litigation and investor-state arbitration differ, reflecting the institutional differences between the two methods of resolving disputes.
Czech name
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Czech description
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Classification
Type
J<sub>imp</sub> - Article in a specialist periodical, which is included in the Web of Science database
CEP classification
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OECD FORD branch
50202 - Applied Economics, Econometrics
Result continuities
Project
<a href="/en/project/GA18-04630S" target="_blank" >GA18-04630S: The Economic Impact of Investment Disputes</a><br>
Continuities
I - Institucionalni podpora na dlouhodoby koncepcni rozvoj vyzkumne organizace
Others
Publication year
2022
Confidentiality
S - Úplné a pravdivé údaje o projektu nepodléhají ochraně podle zvláštních právních předpisů
Data specific for result type
Name of the periodical
Journal of Multinational Financial Management
ISSN
1042-444X
e-ISSN
1873-1309
Volume of the periodical
63
Issue of the periodical within the volume
March
Country of publishing house
NL - THE KINGDOM OF THE NETHERLANDS
Number of pages
16
Pages from-to
100728
UT code for WoS article
000817754500006
EID of the result in the Scopus database
2-s2.0-85121754854