Legal uncertainty generates transaction costs, and European company boards will inevitably incur costs minimizing the information asymmetries created by different legal regimes that may or may not apply to their company.
Source quote, verbatim
Legal uncertainty generates transaction costs.
From
Richard W. Painter, Wulf A. Kaal, Extraterritorial Application of US Securities Law – Will the US Become the Default Jurisdiction for (2010), 4.3. Legal Uncertainty, p. 6 https://ssrn.com/abstract=1664809 · source PDF
Cite as
Richard W. Painter, Wulf A. Kaal, Extraterritorial Application of US Securities Law – Will the US Become the Default Jurisdiction for (2010). SSRN: https://ssrn.com/abstract=1664809
Holds when
firms facing more than one potentially applicable legal regime
restated_bykaal:claim:1806252-018 A lack of regulatory guidance creates legal uncertainty, and legal uncertainty in turn generates transaction c...
extended_bykaal:claim:1806252-006 Regulating entities that operate in the same markets under asymmetric rules creates legal uncertainty and sign...
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