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This paper aims to study the impact of geopolitical uncertainty on corporate cost of debt and the moderating role of information asymmetry between creditors and borrowing firms.

This study uses 5,223 firm-quarter observations on German-listed firms spanning 2010:Q1–2021:Q4. This study regresses the cost of debt financing on the geopolitical risk, accounting quality and other control variables. Information asymmetry is measured using the performance-matched Jones-model discretionary accrual and the stock bid-ask spread. It uses interaction terms to check if information asymmetry moderates the impact of geopolitical uncertainty on the cost of debts and control for the moderating role of business risk. For the sake of robustness check, it uses long-term cost of debt and bond spread as alternative dependent variables. In addition, this study executes instrumental variables regression and propension score matching to control for potential endogeneity problems.

Estimation results show that geopolitical uncertainty exerts a positive impact on the cost of debt. This impact is found to be more important on the cost of long-term debts. Information asymmetry is found to exacerbate the positive impact of geopolitical risk on the cost of debt. These results are robust to the change of the dependent variable and to the mitigation of potential endogeneity. At high levels of information asymmetry, this impact is more important for firms belonging to “Transportation”, “Automobiles and auto parts”, “Chemicals”, “Industrial and commercial services”, “Software and IT services” and “Industrial goods” business sectors.

Geopolitical uncertainty should be seriously considered when setting strategies for corporate financial management in Germany and similar economies that are directly exposed to geopolitical risks. Corporate managers should design a comprehensive set of corporate policies to improve their transparency and accountability during increasing uncertainty. Policymakers are required to implement innovative monetary and fiscal policies that take into consideration the heterogeneous impact of geopolitical uncertainty and information transparency in order to contain their incidence on German business sectors.

Despite its relevance to corporate financing conditions, little is known about the impact of geopolitical uncertainty on the cost of debt financing. To the best of the authors’ knowledge, there is still no empirical evidence on how information asymmetry between creditors and borrowing firms shapes the impact of geopolitical uncertainty on the cost of debt. This paper tries to fill this gap by interacting two measures of information asymmetry with geopolitical uncertainty. In contrast with previous studies, this study shows that the impact of geopolitical uncertainty on the cost of debt is non-linear and heterogeneous. The results show that the impact of geopolitical uncertainty does not exert the same impact on the cost of debt instruments with different maturities. This impact is found to be heterogeneous across business sectors and to depend on the level of information asymmetry.

Buyers and suppliers often perceive relationship governance mechanisms, such as trust and contractual fairness, in different ways. These differences in perception create an extra layer of complexity that is often ignored in the extant literature. This study adds to the understanding of how perceived asymmetries in trust and contractual fairness, two key relationship governance mechanisms, impact relational rents. This study also analyzes how boundary spanners aid managers to deal with these perceived asymmetries.

Based on survey data of 103 buyer–supplier dyads from a single global manufacturer of industrial equipment, the authors test hypotheses of perceived asymmetries in trust and contractual fairness, as well as the moderating effect of boundary spanners, on relational rents.

This research challenges the belief that asymmetries negatively impact or lead to unstable buyer–supplier relationships. Furthermore, it explains how preferential treatment and length of the relationship could reduce the impact of asymmetric perceptions.

This study stresses that open communication, which considers different viewpoints, helps to overcome the negative differences in attitude and perception. In addition, the authors found that long-term relationships seem to be far more resilient in dealing with asymmetries and that preferential treatments are best applied in (approximately) symmetric relationships in terms of contractual fairness.

While studies on buyer–supplier relationships often assume symmetric perceptions of governance mechanisms, asymmetric perceptions are far more prominent in reality. This study aims to improve one’s understanding of the impact of these asymmetries as well as how boundary spanners can affect these perceptions.

Previous literature posits that corporate governance and information asymmetry are the main factors in making efficient investments. Meanwhile, a growing body of studies is of the opinion that corporate governance can also mitigate the problem of information asymmetry and consequently exerts significant impacts on the association between information asymmetry and investment efficiency. This study aims to analyze the impact of corporate governance and information asymmetry on investment efficiency. It also tests the moderating role of corporate governance in the relationship between information asymmetry and investment efficiency.

The sample consists of 4,082 firms domiciled in 20 developed countries over the years from 2003 to 2019, including 33,812 firm-year observations. The bid–ask spread is used as a proxy for information asymmetry. To measure corporate governance performance, a proxy provided by ASSET4 is employed, and to determine the optimal levels of investments, we relied on the growth opportunity. To estimate the models, ordinary least squares and generalized method of moment are used.

The results reveal that information asymmetry is inversely related to investment efficiency, and, corporate governance mitigates this negative association.

This paper sheds light on the role of corporate governance in firms as a lever for mitigating information asymmetry and tries out information asymmetry and agency theories in relation to the impact of information asymmetry on investment efficiency. It also confirms the theory stating that corporate governance can be considered as a determinant of investment efficiency.

Teams in extreme and disruptive contexts face unique challenges that can undermine coordination and decision-making. In this study, we evaluated how affective differences between team members and team process norms affected the team's decision-making effectiveness.

Teams were placed in a survival simulation where they evaluated how best to maximize the team's survival prospects given scarce resources. We incorporated multisource and multirater (i.e., team, observer, and archival) data to ascertain the impacts of affect asymmetry and team process norms on decision-making effectiveness.

Results suggest that teams with low positive affect asymmetry and low process norms generate the most effective decisions. The least effective team decision performance occurred in teams characterized by high variance in team positive affectivity (high positive affect asymmetry) and low process norms. We found no similar effect for teams with high process norms and no effect for negative affect asymmetry, however, irrespective of team process norms.

These findings support the affect infusion model and extend cognitive resource theory, by highlighting how affect infusion processes and situational constraints influence team decision-making in extreme and disruptive contexts.

This paper aims to examine the non-linear aspects of the relationship between asymmetry and performance in supply chains (SCs), under varying intensities of collaboration and integration.

The paper offers a useful new approach to designing strategic elements of supply chain management (SCM) relationships. Using the partial least squares method, an empirical study of 66 companies in Spain has been conducted to clarify contemporary relationships, suggest new directions and ultimately contribute toward developing SCM theory.

The influences of asymmetry on performance in varying collaboration and integration contexts are shown to be unstable and have non-linear paths. It is inappropriate for all firms to collaborate or integrate continually, even for a prescribed period. Furthermore, due to asymmetry, SCM processes are more complex.

The results’ validity may be limited to contexts specific to Spanish SCs. It would be valuable to investigate the impact of asymmetry on firms’ performance and relationships in other markets.

Collaborations and integration between partners in a SC might change the role of asymmetry from restraining to improving performance. The best way to improve performance in asymmetric relationships is to collaborate. Certain dimensions of integration and full integration are not necessarily required to improve firms’ performance under asymmetry conditions.

The study adds a new viewpoint on SCM by suggesting that not all collaboration and integration developments lead directly to improved performance.

The purpose of this study is to examine the effects of relationship digitization benefits on reseller profit. The authors hypothesized two pathways by which the digitization benefits improve reseller profitability: direct and indirect. The direct pathway is via enhancing the reseller’s digital resources and capabilities and the indirect pathway is by improving the relationship with a focal manufacturer by reducing inequity and enhancing interorganizational trust.

The authors use the survey methodology to attempt to understand the interorganizational dynamics of digitization. The authors survey more than 200 resellers in the computer and computer components industry.

Overall, the pattern of results generally supports the framework for direct and indirect effects of digitization benefits on the bottom line of the reseller, as well as the idea of examining the benefits structure components of benefit magnitude and benefit asymmetry. Sales benefit magnitude improves reseller profit directly, as enhanced digital resources result in a more efficient and effective reseller salesforce. The indirect effects flow through to profitability via inequity and trust.

The authors are not aware of any prior research that uses the asymmetry and magnitude framework to approach the digitization phenomenon.

The purpose of this paper is to investigate whether information asymmetry mediates the relationship between disclosure and cost of equity.

The study is based on a sample of 500 companies listed in Bombay Stock Exchange for a period of six years from 2015 to 2021. Panel data regression is applied to analyze the relationship between voluntary disclosure, cost of equity and information asymmetry. Mediation effect of information asymmetry is tested with the help of Barron and Kenny’s (1986) approach.

Findings suggest that in case of Indian companies, disclosure reduces cost of equity directly and indirectly through mediation of information asymmetry. Indian investors value credible information for better estimation of future returns, supporting the validity of estimation risk and stock market liquidity hypothesis, which proposes an inverse relationship between disclosure and cost of equity.

Managers can use the findings to strategize their disclosure policy and secure funds at lower cost. Shareholders can monitor managerial actions by demanding credible disclosures. Government too can encourage voluntary disclosure by providing special incentives to the firms.

This study is a pioneering research that investigates the mediating influence of information asymmetry between disclosure and cost of equity with reference to the Indian corporate landscape.

This paper aims to examine the price impact of block trades for FTSE 100 firms.

Using event studies a sample of 1.6 million block purchases and 1.2 million block sales over the time period 1998‐2005 is analysed.

Once block price effects are estimated using quote returns to eliminate bid‐ask bias, the asymmetry in buyer and seller initiated trades is eliminated.

A possible avenue for future research may be to look at the impact of inflation on the asymmetry between block purchases and sales. This may be an interesting extension to the current study given that inflation appears to be an important determinant of the equity premium in international stock markets.

The empirical results suggest that market liquidity is one of the factors that is driving the asymmetry between block purchases and sales on the London Stock Exchange. The paper is of interest to academics and practitioners who study and invest in block trades.

This is the first study of the UK stock market to encapsulate bid‐ask biases in block trades.

The aim of this paper is to describe and apply a new three‐step approach to prioritizing service attributes in formulating quality‐improvement strategies. In particular, the paper seels to demonstrate the value of impact range‐performance analysis (IRPA) and impact‐asymmetry analysis (IAA) in prioritizing quality attributes for improvement.

The proposed new analytical framework is developed and presented. Data from a survey on satisfaction with airport passenger services are then used to demonstrate the proposed approach. Improvement priorities are derived using a three‐step analytical framework.

This paper raises several conceptual issues concerning importance‐performance analysis (IPA). In particular, the study contends that direct and indirect measures of the “importance” of an attribute are not measuring the same construct.

Managers who use IPA to prioritize the improvement of service attributes might obtain misleading recommendations. In particular, managers should be aware that the impact of an attribute on overall customer satisfaction can vary significantly with different levels of performance of that attribute.

The study proposes a revised approach to IPA in which the traditional measure of “attribute‐importance” is replaced by a measure of the range of attribute‐impact on overall customer satisfaction (RIOCS). Moreover, a new analysis provides detailed information on asymmetric relationships between attribute‐level performance and overall customer satisfaction (OCS).

Trust is the glue that holds cooperative relationships together and often exists in an asymmetric manner. The purpose of this study is to explore how to mitigate the issue of losses or increased transaction costs caused by opportunistic behavior in a soft environment where trust asymmetry is quite common and difficult to avoid.

This study focuses on examining asymmetric trust between the government and the private sector in public-private partnership (PPP) projects. Drawing upon both project realities and relevant literature, the primary conditional variables influencing asymmetric trust are identified. These variables encompass power perception asymmetry, information asymmetry, interaction behavior, risk perception differences and government-side control. Subsequently, through the use of a survey questionnaire, binary-matched data from both the government and the private sector are collected. The study employs fuzzy-set qualitative comparative analysis (fsQCA) to conduct a configurational analysis, aiming to investigate the causal pathways that trigger asymmetric trust.

No single conditional variable is a necessary condition for the emergence of trust asymmetry. The pathways leading to a high degree of trust asymmetry can be categorized into two types: those dominated by power perception and those involving a combination of multiple factors. Differences in power perception play a crucial role in the occurrence of high trust asymmetry, yet the influence of other conditional variables in triggering trust asymmetry should not be overlooked.

The findings can contribute to advancing the study of trust relationships in the field of Chinese PPP projects. Furthermore, they hold practical value in facilitating the enhancement of trust relationships between the government and the private sector.