# kaal:claim:1664809-023

**Claim.** 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.

**Type.** mechanism  **Support.** evidenced

**Holds when.**

- firms facing more than one potentially applicable legal regime

**Source quote.**

> 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, page 6

**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

**Verify.** sha256 of source PDF `2d5c8c30f969f8eb613bfa1fe6888a7cfa1a452e1027bcda0489618ceac62c20` at https://raw.githubusercontent.com/wulfkaal/Academic-Papers/main/papers/pdf/Painter%20and%20Kaal%20-%202010%20-%20Extraterritorial%20Application%20of%20US%20Securities%20Law%20%E2%80%93%20Will%20the%20US%20Become%20the%20Default%20Jurisdiction%20for.pdf

**Topics.** economics, law-and-legal-systems, disclosure, compliance, corporate-governance

**Keywords.** transaction-costs, legal-uncertainty, information-asymmetry, compliance-costs, boards-of-directors

**Related claims.**

- restated_by: https://wulfkaal.github.io/claims/1806252-018
- extended_by: https://wulfkaal.github.io/claims/1806252-006

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