Browse all Channels
Inderscience Publishers
World Trade Center Bldg, 29, route de Pre-Bois, Case Postale 896 ,
Geneva 15 ,
CH-1215
Switzerland
  4. The information asymmetry and valuation effects on health care ...

The information asymmetry and valuation effects on health care technology

0
- By:

Courtesy of Inderscience Publishers

The asymmetry in information between the managers of a health care firm and the rest of the market is of particular importance in corporate finance. This paper studies the effect that information asymmetry has on the financial behaviour of for-profit hospitals during the processes of capital structure formation and accumulation of the wealth needed to advance their health technology. The results indicate that information asymmetry matters in the formulation of a health firm's external and internal capital formation and thereby the extent of its ability to acquire technology. Risk of the market and abnormal cashflow returns are key measures of information asymmetry. As expected, the level of information asymmetry increases the drop observed in the stock price of the firm at or near the announcement date.

Keywords: asymmetric information, capital technology, health care firms

Related articles

  • Case study - Chemical management and the health and safety of workers at Packers Plus enhanced with ...

    IntroductionPackers Plus is the innovator of open hole, multi-stage completion systems and provides solutions for technically challenging applications in horizontal, vertical, multi-lateral and high pressure/high temperature (HPHT) wells. Packers Plus has operations in Canada, the U.S. and around the world.SituationPackers Plus came to Chemscape Safety Technologies 2 years ago looking for a solution to keep their MSDSs up to date. They were frustrated with the time it took to obtain updated MSDSs and then make...

  • A Health and Safety Career

    From Starting Out to Becoming Chartered Former SHEilds student Gary Webster who became an employee describes a Health and Safety career, from starting out to becoming chartered. I suppose the foundations of Health and Safety were planted within me when I served in the Army. I was a PTI (Physical Training Instructor) in charge of the daily fitness and Well-Being of a group of soldiers. I was also part of an artillery gun detachment and quickly learned the importance of discipline and safety measures to reduce...

  • Study: Wastewater treatment improves fish health

    A decade-long study by Canadian researchers concludes that improved water treatment benefits fish populations.University of Waterloo researchers found that within a year after an upgrade to one of the area’s municipal wastewater treatment plants, there was a 70 percent decrease in the occurrence of intersex fish in Ontario’s Grand River. Within three years there was a full recovery of the fish population.The researchers, who have been monitoring male rainbow darter fish in the river since 2007, found...

  • Construction site health and safety failures

    As what is largely agreed to be the world’s most dangerous industry, construction site Health and Safety failures constitute potentially severe harm to worker wellbeing, with the capacity to severely impact quality of life or – put bluntly – end it. Running contrary to this doom-laden approach though, improvements to the industry typically arise from assessing HSE failures and implementing measures to reduce risks and control common hazards. In line with this thinking, in an effort to help...

  • Employee Health and Safety Involvement - Communicating with your Workforce

    Part of a recognised management system such as HSG65 or ISO 18001 is the requirement that companies strive for ‘continual improvement’. On the face of it this seems like an unquestionable positive, but its pursuit is not without pitfalls. These are intended to be productive exercises aimed at improving systems and safety. Unfortunately some companies tend to forgo the bigger picture and feel it means that they should embrace new safety features as and when they become available, expecting workers to...

Customer comments

No comments were found for The information asymmetry and valuation effects on health care technology. Be the first to comment!