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We examine the value of due diligence recommendations on Reddit's Wallstreetbets (WSB) platform. Before the Gamestop (GME) short squeeze, recommendations are significant predictors of returns and cash-flow news. This predictability is eliminated post-GME. Post-GME, the fraction of reports emphasizing price-pressure or attention-grabbing stocks dramatically increases, and the decline in informativeness is concentrated in these reports. Similarly, retail trade informativeness is particularly strong following DD reports in the pre-GME period, but not post-GME. Our findings are consistent with the view that the Gamestop event altered the culture of WSB , leading to a deterioration in investment quality that adversely affected smaller investors. [ABSTRACT FROM AUTHOR]

ABSTRACT: Section 1502 of the Dodd–Frank Act requires SEC‐registered issuers to conduct supply chain due diligence and submit conflict minerals disclosures (CMDs) that indicate whether their products contain tantalum, tin, tungsten, or gold (3TG) sourced from the Democratic Republic of the Congo (DRC) or its neighboring countries (“covered countries”). Consistent with the reputational cost hypothesis, we find that heightened public attention to CMDs increases responsible sourcing. After Section 1502 takes effect, we find higher demand for 3TG products processed in certified smelters, decreased conflicts in covered countries’ mining regions relative to other regions, and reduced sensitivity of conflict risk to conflict minerals’ price spikes. Finally, we find that conflicts decrease in Eastern DRC territories with prevalent 3T (tantalum, tin, and tungsten) mines but increase in territories with prevalent gold mines. Overall, our findings highlight the real effects of enhanced supply chain transparency regulation.

We propose and test a framework of private information acquisition and decision timing for asset allocators hiring outside investment managers. Using unique data on due diligence interactions between an institutional allocator and 860 hedge fund managers, we find that the production of private information complements public information. The allocator strategically chooses how much proprietary information to collect, reducing due diligence time by 18 months and improving outcomes. Funds selected by the manager outperform those not selected by 9 |$\%$| over 20 months. The outperformance relates to the allocator learning about fund return-to-scale constraints and manager skill before other investors. [ABSTRACT FROM AUTHOR]

The article analyzes the potential impact of the designation of two per- and polyfluoroalkyl substances (PFAS) as hazardous substance on liability and due diligence under the Comprehensive Environmental Response, Compensation and Liability Act (CERCLA). Topics discussed include environmental conditions and of a property and elements of liability under CERCLA, CERCLA facility and release, and the U.S. Environmental Protection Agency's PFAS enforcement discretion and settlement policy.

Purpose: The German Supply Chain Due Diligence Act (GSCDDA), as a comprehensive regulation for due diligence in supply chains, will exert profound pressure on companies' sustainable supply chain management (SSCM). This study aims to examine the affected stakeholders' polarizing expectations stemming from the GSCDDA, the resulting impacts on SSCM and how these findings compare with theoretical SSCM developments. Design/methodology/approach: From 5,490 GSCDDA posts on X (formerly "Twitter"), the authors extracted 556 qualitative posts illustrating the GSCDDA discourse and analyzed them from a stakeholder perspective. The posts were classified according to the dimensions of stakeholder groups and expectations (i.e. challenges and opportunities). The authors then synthesized the posts across these dimensions and compared the identified expectations with the SSCM literature. Findings: Seven stakeholder groups were identified, along with nine challenges (e.g. legal flaws) and four opportunities (e.g. increased transparency). The synthesis of both components revealed highly discussed and conflicting expectations. The theoretical SSCM developments partly differ from the discourse, indicating discernible gaps between theory and practice Practical implications: Identifying key stakeholder groups supports building synergies between GSCDDA implementers and stakeholders to tackle their challenges and reinforce opportunities. Originality/value: Due to the growing prevalence of supply chain due diligence regulations, it is essential to consider the legal implications for SSCM. This study explores the link between due diligence concepts and SSCM, and to the best of the authors' knowledge, this is the first study to analyze how legal pressure shapes stakeholders' expectations on companies' SSCM. [ABSTRACT FROM AUTHOR]

Introduction: Intraindividual variability across a battery of neuropsychological tests (IIV-dispersion) can reflect normal variation in scores or arise from cognitive impairment. An alternate interpretation is IIV-dispersion reflects reduced engagement/invalid test data, although extant research addressing this interpretation is significantly limited. Method: We used a sample of 97 older adult (mean age: 69.92), predominantly White (57%) or Black/African American (34%), and predominantly cis-gender male (87%) veterans. Examinees completed a comprehensive neuropsychological battery, including measures of reduced engagement/invalid test data (a symptom validity test [SVT], multiple performance validity tests [PVTs]), as part of a clinical evaluation. IIV-dispersion was indexed using the coefficient of variance (CoV). We tested 1) the relationships of raw scores and "failures" on SVT/PVTs with IIV-dispersion, 2) the relationship between IIV-dispersion and validity/neurocognitive disorder status, and 3) whether IIV-dispersion discriminated the validity/neurocognitive disorder groups using receiver operating characteristic (ROC) curves. Results: IIV-dispersion was significantly and independently associated with a selection of PVTs, with small to very large effect sizes. Participants with invalid profiles and cognitively impaired participants with valid profiles exhibited medium to large (d =.55–1.09) elevations in IIV-dispersion compared to cognitively unimpaired participants with valid profiles. A non-significant but small to medium (d =.35–.60) elevation in IIV-dispersion was observed for participants with invalid profiles compared to those with a neurocognitive disorder. IIV-dispersion was largely accurate at differentiating participants without a neurocognitive disorder from invalid participants and those with a neurocognitive disorder (areas under the Curve [AUCs]=.69–.83), while accuracy was low for differentiating invalid participants from those with a neurocognitive disorder (AUCs=.58–.65). Conclusions: These preliminary data suggest IIV-dispersion may be sensitive to both neurocognitive disorders and compromised engagement. Clinicians and researchers should exercise due diligence and consider test validity (e.g. PVTs, behavioral signs of engagement) as an alternate explanation prior to interpretation of intraindividual variability as an indicator of cognitive impairment. [ABSTRACT FROM AUTHOR]

The author reflects on the judicial virtues exemplified by Chief Judge William H. Pryor Jr., emphasizing virtues such as incorruptibility, courage, and impartiality. These qualities define Judge Pryor's career, from his integrity in combatting corruption to his courage in controversial cases, illustrating a commitment to judicial excellence grounded in ethical principles and rigorous diligence.

Besides state actors, non-state actors and particularly private companies target human rights defenders (HRDs) and violate their rights to intimidate and stop them from challenging their interests. Despite the absence of responsibility of non-state actors in international human rights law, the United Nations Guiding Principles on Business and Human Rights (UNGPs) set out global standards and acknowledge the role of HRDs in the promotion of human rights, urging corporations to work closely with defenders. Considering the effectiveness of the UNGPs, the article explores the potential for protecting HRDs within the framework and concludes that the UNGPs could be utilised to enhance the protection of defenders in relation to business activities. It also suggests that current efforts of implementation would be strengthened by mandatory human rights due diligence laws at the national and regional levels, and emphasises that a clear inclusion of corporate responsibility to respect defenders is required, as it would be beneficial for both sides, defenders and business enterprises. [ABSTRACT FROM AUTHOR]

This study examines factors influencing Ghanaian banks' compliance with anti-money laundering (AML) legislation. Drawing upon institutional, compliance, and dynamic capability theories, the study identifies the interplay of organisational, regulatory, and employee factors influencing compliance outcomes. A mixed methods approach was used to collect data from 23 universal banks, 9 local and 14 foreign, in Ghana, focusing on experienced managers and employees in risk, legal, operations, compliance, and business development departments. The findings show that employee characteristics like due diligence and moral involvement have a positive relationship with compliance with AML regulations; however, contrary to expectations, effective AML/CFT programs did not significantly impact banks' adherence to these regulations. The association between moral engagement, an innovative culture, and AML compliance is weakened by normative power and an innovative culture acting as negative moderators. This study contributes empirical evidence to the literature on AML compliance in emerging markets and offers practical implications for policymakers, regulators, and banking professionals seeking to boost regulatory effectiveness and mitigate financial crime risks. This study provides a foundation for targeted interventions and strategic initiatives aimed at strengthening the AML regulatory landscape in Ghana and other countries. [ABSTRACT FROM AUTHOR]

Copyright of Internationales Handelsrecht is the property of De Gruyter and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

Increasing urbanization is driving rapid growth in residential multi-owned properties (RMOPs) worldwide. Concerns about the quality of these buildings are also growing in many countries. Yet research into the quality of RMOPs (particularly apartments) remains scant and under-theorized. Addressing this knowledge gap, this paper reports the results of research which employed information asymmetry theory to provide new insights into the prevalence and risks of building defects in the Australian RMOP construction market. Using data about defects in 635 RMOPs built in Sydney between 2008 and 2017 and semi-structured interviews with sixty-six experienced practitioners, the results highlight the severity of the defects crisis. The research identified two types of information asymmetries which exacerbate the risk of buying into a defective building for RMOP customers: data fragmentation and data robustness. From a policy and practical perspective, this highlights the challenges faced by consumers in undertaking 'due diligence' and the need for reforms that address these information asymmetries. [ABSTRACT FROM AUTHOR]

This article aims to explain why national governments choose soft policies in the domestication of international norms even when those norms may explicitly call for harder measures. The article achieves this aim by exploring domestic adoption of National Action Plans (NAPs) for implementing the United Nations Guiding Principles on Business and Human Rights (UNGPs). The UNGPs are an international soft law instrument that calls for a mix of voluntary and mandatory policies to promote human rights due diligence, and NAPs are soft domestic policy instruments that lack the bindingness of mandatory due diligence legislation now found in several states. Most governments with NAPs have adopted them specifically as foreign policies, treating them not as regulatory initiatives but as tools for enhancing national reputations. Using a range of primary and secondary sources, the article constructs a case study of Sweden to explain why governments might opt for softer implementation of the UNGPs in the form of NAPs. It draws several conclusions: (1) governments may emulate the approach to domesticating international regulatory norms that is promoted by international organisations; (2) support from domestic actors motivates norm implementation, and the policy style selected is likely to reflect power constellations in the state and, under consensus‐based governance systems, the lowest common denominator of actor preferences; and (3) path dependency following institutional venue selection influences the type of policy developed and adopted. These findings shed new light on the reasons why international policy norms are implemented in ‘softer’ ways than perhaps intended by their architects. [ABSTRACT FROM AUTHOR]

Narratives about women and girls are often used to illustrate abuses in global trade. The article begins by amending the Narrative Policy Framework (NPF) to include the agency of (women) characters and to take into account North–South asymmetries. The framework then serves to study NGO gender narratives in ethical trade campaigns, based on advocacy documents and semi-structured interviews on the recent campaigns for the European Union's new Corporate Sustainability Due Diligence Directive (CSDDD). The results show that the successful campaigns have focused one-sidedly on women workers in the global South, portraying them as mere victims of corporate greed. NGOs diverted attention away from women’s responsibility as consumers and citizens for grievances in transnational supply chains. The solution presented by activists was consequently to demand gender-sensitive policy interventions from outside. Campaigns missed opportunities for narratives of women as agents of change and potential for mutual solidarity. [ABSTRACT FROM AUTHOR]

Recently, the use of polygenic risk scores in embryo screening (PGT-P) has been introduced on the premise of reducing polygenic disease risk through embryo selection. However, it has been met with extensive critique: considered "technology-driven" rather than "evidence-based", concerns exist about its validity, utility, ethics, and societal effects. Its scientific foundations and criticisms thus need to be carefully considered. However, seeing as PGT-P is already offered in some settings, further questions need to be addressed, in order to give due diligence to various aspects of PGT-P. By examining the complexities of clinical introduction of PGT-P, we discuss whether PGT-P could be responsibly implemented in the first place, what elements need to be addressed if PGT-P is clinically implemented, and subsequently how counselling and decision-making of its users could be envisaged. By dissecting these elements, we provide an overview of important practical questions of PGT-P and emphasize elements of PGT-P that we think have yet to be given sufficient attention. These questions and elements are for example related to the potential target group, scope, and decision-making possibilities of PGT-P. The aspects we raise are crucial to consider by the scientific community and policy makers for the development of guidelines and/or an ethical framework for PGT-P. [ABSTRACT FROM AUTHOR]

Purpose: Women’s increasing interest in eSports is an emblematic phenomenon. However, they have been facing discriminatory sexist practices based on a discourse focused on establishing gender inferiority. Thus, the present research aims to investigate how gender performativities are produced in eSports consumption by women gamers. Originality/value: Due to a lack of discussions about female eSports consumption, the current study explores gaps in consumer culture research literature based on theoretical and epistemological concerns. Butlerian concepts of performativity are used to help better understand the conduct produced in discussions about female eSports consumption. Design/methodology/approach: An interpretive content analysis (ICA) of 44 interviews was carried out to help better understand women gamers’ perception of their experience in games, and in the cultural scenario itself, the eSports consumers’ social network is formed by both practitioners and game enthusiasts. Findings: The current analytical effort identified two dimensions: “Fight like a girl!” and “Girls just want to have fun!”. It was possible to perceive that even gender performativities with different interests work as gender discourse reproducers and spreaders in both dimensions when they take place without due diligence. Ultimately, this is a complex market dispositif capable of leading the eSports scenario to a patriarchal system among its consumers. [ABSTRACT FROM AUTHOR]

To access to the especially strong protection offered by the right to inform guaranteed in article 20 letter d) of the Spanish Constitution (CE), two requirements must be met: a public interest in what is communicated and that it is truthful (veraz). The latter has been interpreted as a certain degree of diligence in verifying the facts, but not to the absurd extent of demanding scientific certainties. Given the foregoing, the constitutional protection, and to a large degree, the exercise of journalism, depend on what interpreters understand by "due diligence", which in turn will depend on the circumstances and context of each case. An exhaustive review of the case-law from the Spanish Constitutional Court (TCE) will allow us to systematize the main criteria used so far, as well as its evolution and development over time, enabling us to offer a practical guide to access the protection offered by this right, where Spain has been a pioneer worldwide. [ABSTRACT FROM AUTHOR]

Adequate administration of Human Rights (HR) in business presents difficulties. The Guiding Principles on Business and Human Rights (UNGPs) constitute the key tool for good governance. Their approval in 2011 by the United Nations was a historic milestone. The core of the company's performance regarding the UNGPs is the Due Diligencess is critical for its implementation. As of 2020, the European Union (EU) initiated work on a Directive that will make Do Diligence mandatory. This article investigates, through in-depth interviews with company presidents and directors, the degree of preparation of BoDs for the new regulatory scenario in Spain, Portugal, France and Malta. [ABSTRACT FROM AUTHOR]

In this paper, we contribute to the topic of the non-performing loans (NPLs) business profitability on the secondary market by developing machine learning-based due diligence. In particular, a loan became non-performing when the borrower is unlikely to pay, and we use the ability of the ML algorithms to model complex relationships between predictors and outcome variables, we set up an ad hoc dependent random forest regressor algorithm for projecting the recovery rate of a portfolio of the secured NPLs. Indeed the profitability of the transactions under consideration depends on forecast models of the amount of net repayments expected from receivables and related collection times. Finally, the evaluation approach we provide helps to reduce the "lemon discount" by pricing the risky component of informational asymmetry between better-informed banks and potential investors in particular for higher quality, collateralised NPLs. [ABSTRACT FROM AUTHOR]

Copyright of Andares: Revista de Derechos Humanos y de la Naturaleza is the property of Quito Universidad Andina Simon Bolivar, Sede Ecuador and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

This study explores the diverse array of risks inherent in building renovation investments and proposes effective strategies for risk mitigation tailored to investors. Through a combination of qualitative analysis, expert interviews, and quantitative risk quantification techniques, the research identifies and evaluates key risk factors across regulatory, financial, technical, market, and other domains. Thorough due diligence, proactive stakeholder engagement, and contingency planning emerge as critical components of effective risk management in renovation projects. The study underscores the importance of proactive risk mitigation in enhancing project success and investor returns. By providing investors with a comprehensive understanding of the challenges they may face and practical strategies for addressing them, this research aims to empower stakeholders to make informed decisions and achieve positive outcomes in building renovation investments, ultimately contributing to a more resilient and sustainably built environment. [ABSTRACT FROM AUTHOR]

ISIS, as an insurgent movement, announced its presence in Iraq in 2013, and, after extensive military and non-military activities in the country, its suppression was officially declared by the Prime Minister in 2017. The main question is whether the actions of this failed insurgent movement can be attributed to Iraq under international law of responsibility? This study shows that, since the Iraqi Government has taken due diligence to suppress the movement and prosecute its members, and has not granted amnesty, acts of ISIS are not attributed to it. But governmental acts of ISIS including legislative, executive and judicial ones can be attributed to state if they has taken in absence or default of government officials and in response to a request for such acts. Some of ISIS's acts in Iraq especially in Mosul have these characteristics and are accordingly attributed to Iraq. [ABSTRACT FROM AUTHOR]

The directive on “corporate due diligence for sustainability purposes”, approved on 24 May 2024, follows international attempts by some national legal systems to transfer due diligence to the level of hard law. The proposal obliges large companies to structure a risk management system against social and environmental externalities related to their activities along the entire global supply chain, requiring States to adopt monitoring and control mechanisms and a system of sanctions. To safeguard this process, the introduction of an obligation to involve a qualified list of stakeholders, including workers and their representatives, and an unprecedented civil liability of companies and directors are envisaged. Starting from these premises, the paper focuses first of all on the introduction of the civil liability regime for companies linked, among other things, to the failure to prepare such information and participatory protocols. The paper then analyses the critical issues and potential of the directive with particular reference to the prospects of a participatory governance of corporate risk and the role that, in its implementation, workers’ participation and social dialogue can assume. This is also in light of the progressive emergence of new collective rights, including those of self-employed workers and platform workers, provided for by the most recent initiatives of the European Commission.

This article analyses how the United Kingdom’s Due Diligence Regulations on Forest Risk Commodities (UKDR) relate to the bilateral soybean trade between Brazil and the UK. The findings strongly suggest that soybeans from Brazil are one of the main targets of the UK's new legislation. The crossing of literature, NGO reports, trade data, and open governmental and institutional documents showed that the UK highly relies on soybeans from South America to fulfil its internal animal protein food industry, with soybeans from Brazil being the second major case of the UK’s ‘imported deforestation’. Between 2020 and 2022, soybeans were also the second most exported product from Brazil to the UK, after gold, reinstating the Brazilian traditional place as an exporter of raw and essential commodities to developed countries. This article advocates that even though the new UKDR will affect Brazil disproportionally, compared to other agri-exporter countries, the legislation is not designed to challenge the soybeans economic model or deforestation on a broader aspect but to ‘clean’ UK’s agricultural supply chain from illegal tropical forest deforestation. The article's findings show that in the last five years (2017 -2022), the annual percentage of Brazilian soybean exports from states that comprise the Amazon biome, in part or wholly, to the UK was above 70% every year, a trend that does not follow Brazilian general soybean exports, suggesting that the UK may be more exposed to deforestation than other importing countries. The UK food industry could be financing an agricultural production model contributing to Amazon forest deforestation.

In the European Union, the marketing of timber and timber products has long been subject to compliance with the legality requirements set out in EU Timber Regulation 995/2010 (EUTR), which introduces for the first time forest due diligence into EU environmental legislation. The even more innovative EU Regulation 2023/1115 (EU Deforestation Regulation - EUDR), which will enter into force on 30 December 2024, adds to the well-established due diligence procedures, the obligation to geolocate timber harvesting areas and to verify the absence of deforestation and forest degradation. Forest plantations unrelated to these phenomena contributes to alleviating anthropogenic pressure on natural forests, producing quantitatively and qualitatively significant shares of raw material. In the future, given the growing global demand for wood, plantation forestry is set to play an increasingly strategic role, provided it is balanced with other land uses and respects natural ecosystems. Subject to these conditions, the regulatory compliance of plantation timber is easier to prove than that of material from natural forests, which are subject to suitably more limiting utilization restrictions. This implies a de facto simplification of the compulsory due diligence required to minimize the environmental and legality risks considered in the current EU legislation, and this paper aims to demonstrate the reasons why.

Intensification of market processes in the part of attracting foreign investment, conducting mergers and acquisitions (M&A), restructuring of enterprises and expansion of their activities determines the importance of providing potential investors with high-quality information support for making strategic managerial decisions. A contemporary instrument for a comprehensive due diligence of the company’s activities is the audit service of «due diligence». The absent standardization and the lack of legal regulation of due diligence necessitated the improvement of the methodological instruments of this service. Based on this, it is expedient to use modern methods of analysis and control, which will allow not only to assess risks, but also to take preventive measures to minimize them. The aim of the article is to substantiate the content of «due diligence» and improve the methodological instruments by providing recommendations on the use of methods of analysis and control. The information basis of the present research is the normative legal acts of Ukraine on audit and accounting, scientific publications of scholars. The article applies general scientific and special research methods: induction, deduction, analysis, synthesis, horizontal analysis, comparison, and others. Due diligence – as a process of comprehensive preinvestment study – is a crucial element for successful risk management and achieving positive results from concluding an agreement. The dynamics of M&A transactions over the past decades in the world, as well as the structure of the largest contracts in Ukraine over the past year, are researched. Proposals for improving the methodological support for conducting the main types of due diligence based on the use of methods of analysis and control have been developed.

AbstractThe European Union and other advanced economies are turning to mandatory due diligence regulation to address environmental and human rights risks in their global supply chains. This shift is accompanied by calls for ‘smart regulation’ that combines public legislation with private governance instruments and new supporting measures in the producer countries of the Global South. We study the smart regulation agenda in the case of the European Union Deforestation Regulation. We reveal how its progressive rhetoric masks a conservative undertone as business actors and their civil society partners aim to safeguard their vested interests in the age of public supply chain regulation. However, by tracing their lobbying efforts throughout the policy formulation process, we show how this does not imply en bloc support for voluntary, softer forms of regulation. Moreover, these actors exhibit varying motivations and preferences for involving Southern actors in such a mix. Consequently, rather than forming a cohesive policy coalition, their preferences span from conservative to progressive, resulting in new alliances and divisions in this time of regulatory change. By untangling the complexities of ‘smart mix politics’, this article advances critical research into the evolving role, positioning, and influence of business actors in global supply chain governance. [ABSTRACT FROM AUTHOR]

Recently, there has been a strong push for binding human rights due diligence (HRDD) legislation, both at the national and European levels. As empirical evidence of such legislation's impact gradually emerges, it is time to take stock. In this article, we conduct a systematic literature review to assess available empirical evidence on (1) how HRDD legislation affects the policies and practices through which companies engage with human rights; (2) how these policies and practices, in turn, affect different actors in companies' value chains. While it is too early to make conclusive judgements, existing evidence allows us to identify several worrying trends: most companies opt for managerialist and compliance-oriented approaches to HRDD; revert primarily to earlier (and flawed) private governance mechanisms; and try to cascade responsibilities and costs in their supply chain. This risks perpetuating or reinforcing marginalisation and exclusion dynamics. Based on these findings, we formulate some lessons for policy-makers. [ABSTRACT FROM AUTHOR]

Public entities around the world are increasingly deploying artificial intelligence (AI) and algorithmic decision-making systems to provide public services or to use their enforcement powers. The rationale for the public sector to use these systems is similar to private sector: increase efficiency and speed of transactions and lower the costs. However, public entities are first and foremost established to meet the needs of the members of society and protect the safety, fundamental rights, and wellbeing of those they serve. Currently AI systems are deployed by the public sector at various administrative levels without robust due diligence, monitoring, or transparency. This paper critically maps out the challenges in procurement of AI systems by public entities and the long-term implications necessitating AI-specific procurement guidelines and processes. This dual-prong exploration includes the new complexities and risks introduced by AI systems, and the institutional capabilities impacting the decision-making process. AI-specific public procurement guidelines are urgently needed to protect fundamental rights and due process. [ABSTRACT FROM AUTHOR]

Copyright of ASBU Law Journal is the property of Social Sciences University of Ankara and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

We propose a model of due diligence and analyze its effect on prices, payoffs, and deal completion. In our model, if the seller accepts an offer, the winning bidder (or "acquirer") can gather information and chooses when to complete the transaction. In equilibrium, the acquirer engages in "too much" due diligence. Our quantitative results suggest that the magnitude of the distortion is economically significant. Nevertheless, allowing for due diligence can improve both total surplus and the seller's payoff compared to a setting without due diligence. We use our framework to explore the timing of due diligence, bidder heterogeneity, and breakup fees. [ABSTRACT FROM AUTHOR]

In the European Union, the marketing of timber and timber products has long been subject to compliance with the legality requirements set out in EU Timber Regulation 995/2010 (EUTR), which introduces for the first time forest due diligence into EU environmental legislation. The even more innovative EU Regulation 2023/1115 (EU Deforestation Regulation - EUDR), which will enter into force on 30 December 2024, adds to the well-established due diligence procedures, the obligation to geolocate timber harvesting areas and to verify the absence of deforestation and forest degradation. Forest plantations unrelated to these phenomena contributes to alleviating anthropogenic pressure on natural forests, producing quantitatively and qualitatively significant shares of raw material. In the future, given the growing global demand for wood, plantation forestry is set to play an increasingly strategic role, provided it is balanced with other land uses and respects natural ecosystems. Subject to these conditions, the regulatory compliance of plantation timber is easier to prove than that of material from natural forests, which are subject to suitably more limiting utilization restrictions. This implies a de facto simplification of the compulsory due diligence required to minimize the environmental and legality risks considered in the current EU legislation, and this paper aims to demonstrate the reasons why. [ABSTRACT FROM AUTHOR]