Respuesta :
Entering new markets through acquisitions of companies with new products is not risk-free, especially if acquisition becomes a substitute for
market discipline.
What is market discipline?
Market discipline is said to constrain buyers and sellers in setting prices in a market because they have strong incentives to generate revenue and avoid bankruptcy.
Market discipline is a market-based promotion of transparency and disclosure of a business's or entity's risks. It collaborates with regulatory systems to improve market safety and soundness.
Market discipline is the process by which market participants, such as depositors and shareholders, monitor bank risks and intervene to limit excessive risk-taking.
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