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It has also failed to compete on cost, with burdensome regulations and higher transaction costs adding up.
This group says academic studies were seriously flawed because they ignored the higher transaction costs incurred when trading small stocks.
These include higher transaction costs, currency risks, onerous tax treatments for investing abroad and the difficulty in gathering reliable information about foreign companies.
Lucian Cook from property firm Savills said that in the long term buy-to-let investors were "likely to display greater caution faced with higher transaction costs".
Despite theoretical models suggesting otherwise, the evidence shows that higher transaction costs are typically associated with more, rather than less, volatility.
Second, the company experiences higher transaction costs when it must manage voting for a larger group, especially for closely contested issues.
Similar(22)
This is a higher transaction cost compared to selling on the open market for $400,000.
"Buying a basket of CMBS bonds (for diversification) will carry a substantially higher transaction cost than the 25 basis points charged by the ETF," said Lutz.
Marketing of agricultural produce is mostly dominated by women who are also faced with myriads of marketing constraints such as lower market price and higher transaction cost.
The under-researched choice of outsourcing core R&D on an on-going basis appears to face risks of higher transactions costs and loss of control.
They are less familiar with local institutions and thus face higher transactions costs in attempting to resolve disputes.
More suggestions(16)
higher investment costs
higher acquisition costs
higher transfer costs
higher operating costs
higher turnover costs
increasing transaction costs
higher operational costs
higher operations costs
higher transaction times
higher wage costs
higher labour costs
higher food costs
higher transaction prices
higher education costs
higher transaction rates
higher borrowing costs
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com