Value creation and value destruction in investor-state dispute arbitration

Kód výsledku v 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>

Výsledek na webu

<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>

Jazyk výsledku

angličtina

Název v původním jazyce

Value creation and value destruction in investor-state dispute arbitration

Popis výsledku v původním jazyce

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.

Název v anglickém jazyce

Value creation and value destruction in investor-state dispute arbitration

Popis výsledku anglicky

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.

Druh

J_imp - Článek v periodiku v databázi Web of Science

CEP obor

—

OECD FORD obor

50202 - Applied Economics, Econometrics

Projekt

<a href="/cs/project/GA18-04630S" target="_blank" >GA18-04630S: Ekonomický dopad investičních sporů</a><br>

Návaznosti

I - Institucionalni podpora na dlouhodoby koncepcni rozvoj vyzkumne organizace

Rok uplatnění

2022

Kód důvěrnosti údajů

S - Úplné a pravdivé údaje o projektu nepodléhají ochraně podle zvláštních právních předpisů

Název periodika

Journal of Multinational Financial Management

ISSN

1042-444X

e-ISSN

1873-1309

Svazek periodika

63

Číslo periodika v rámci svazku

March

Stát vydavatele periodika

NL - Nizozemsko

Počet stran výsledku

16

Strana od-do

100728

Kód UT WoS článku

000817754500006

EID výsledku v databázi Scopus

2-s2.0-85121754854