The Effects of International Joint Ventures on Shareholder Wealth
AbstractThe purposes of this study are to measure the wealth effects of international joint ventures on the U.S. firms' shareholders and to determine whether these effects are related to the economic status of the partner's home country. The results indicate that overall investor reactions to joint ventures with foreign firms are negative and that only joint ventures with firms from lesser developed countries have nonnegative effects on shareholders' wealth. These findings are in contrast with previous reports of positive stock price reactions to both domestic and international joint ventures. Copyright 1990 by MIT Press.
Download InfoTo our knowledge, this item is not available for download. To find whether it is available, there are three options:
1. Check below under "Related research" whether another version of this item is available online.
2. Check on the provider's web page whether it is in fact available.
3. Perform a search for a similarly titled item that would be available.
Bibliographic InfoArticle provided by Eastern Finance Association in its journal The Financial Review.
Volume (Year): 25 (1990)
Issue (Month): 4 (November)
You can help add them by filling out this form.
CitEc Project, subscribe to its RSS feed for this item.
- Lai, Jung-Ho & Chang, Shao-Chi & Chen, Sheng-Syan, 2010. "Is experience valuable in international strategic alliances?," Journal of International Management, Elsevier, vol. 16(3), pages 247-261, September.
- Moskalev, Sviatoslav A. & Swensen, R. Bruce, 2007. "Joint ventures around the globe from 1990-2000: Forms, types, industries, countries and ownership patterns," Review of Financial Economics, Elsevier, vol. 16(1), pages 29-67.
- Robert Campbell & Nancy White-Huckins & C. Sirmans, 2006. "Domestic and International Equity REIT Joint Ventures: Structuring Corporate Options," The Journal of Real Estate Finance and Economics, Springer, vol. 32(3), pages 275-288, May.
- Cristina López-Duarte & Marta Vidal-Suárez, 2008. "Foreign direct investment through partial acquisitions: hostage effect or conflicts enhancement," Journal of Management and Governance, Springer, vol. 12(3), pages 287-308, August.
- Lee, Hyunchul & Kim, Dukyong & Seo, Minkyo, 2013. "Market valuation of marketing alliances in East Asia: Korean evidence," Journal of Business Research, Elsevier, vol. 66(12), pages 2492-2499.
- Chang, Shao-Chi & Huang, Ping-Chang, 2002. "Corporate multinationalism, organizational learning, and market reaction to international joint ventures: Evidence from Taiwan," Global Finance Journal, Elsevier, vol. 13(2), pages 181-194.
- Sinha, Uday Bhanu, 2008. "International joint venture: Buy-out and subsidiary," Journal of Economic Behavior & Organization, Elsevier, vol. 65(3-4), pages 734-756, March.
- He, Yan & Long, Fu, 2003. "Market expansion versus cost reduction: a financial analysis of foreign direct investment advantages for multinational enterprises," Japan and the World Economy, Elsevier, vol. 15(4), pages 407-417, December.
- Chen, Sheng-Syan & Ho, Kim Wai & Lee, Cheng-few & Yeo, Gillian H. H., 2000. "Investment opportunities, free cash flow and market reaction to international joint ventures," Journal of Banking & Finance, Elsevier, vol. 24(11), pages 1747-1765, November.
- Groot, Tom L. C. M. & Merchant, Kenneth A., 2000. "Control of international joint ventures," Accounting, Organizations and Society, Elsevier, vol. 25(6), pages 579-607, August.
- Ling T. He & F.C. Neil Myer & James R. Webb, 1997. "The Wealth Effects of Domestic vs International Joint Ventures: The Case of Real Estate," Journal of Real Estate Research, American Real Estate Society, vol. 13(3), pages 349-358.
- González Serrano, L. & Laguna Sánchez, M.P. & Robles Fernández, M.D, 2008. "Los Acuerdos De Cooperación De Las Empresas Que Cotizan En Bolsa: Análisis Del Caso Español / Alliances In Spain: Evidence From Stock Market Firms," Investigaciones Europeas de Dirección y Economía de la Empresa (IEDEE), Academia Europea de Dirección y Economía de la Empresa (AEDEM), vol. 14(3), pages 185-201.
- Cheng, Louis T. W. & Fung, Joseph K. W. & Lam, Kin, 1998. "An examination of the determinants of stock price effects of US-Chinese joint venture announcements," International Business Review, Elsevier, vol. 7(2), pages 151-161, April.
- Borde, Stephen F. & Whyte, Ann Marie & Wiant, Kenneth J. & Hoffman, Lorrie L., 1998. "New evidence on factors that influence the wealth effects of international joint ventures," Journal of Multinational Financial Management, Elsevier, vol. 8(1), pages 63-77, January.
- Meschi, Pierre-Xavier, 2004. "Valuation effect of international joint ventures: does experience matter?," International Business Review, Elsevier, vol. 13(5), pages 595-612, October.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Wiley-Blackwell Digital Licensing) or (Christopher F. Baum).
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.