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Shareholder Wealth Effects on Joint Venture Termination: A Transaction Cost Analysis

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Author Info
Reuer, J.J.
Abstract

Managing joint venture (JV transitions can have implications for parent firm performance as JVs become important, albeit temporary, instruments of firms' corporate and international strategies. This study examines the average shareholder wealth effects of five specific types of JV termination. Empirical evidence from U.S. firms terminating domestic and international JVs reveals venture termination neither positively nor negatively influences firm value on average, and no one type of JV termination is superior to its alternatives in general.

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Publisher Info
Paper provided by Purdue University, Krannert School of Management - Center for International Business Education and Research (CIBER) in its series Papers with number 97-001.

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Length: 37 pages
Date of creation: 1997
Date of revision:
Handle: RePEc:fth:purkib:97-001

Contact details of provider:
Postal: Purdue University, Center for International Business Education and Research, Krannert Graduate School of Management, 1310 Krannert Building West Lafayette, Indiana 47907-1310.
Web page: http://www.krannert.purdue.edu/
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Related research
Keywords: JOINT VENTURES ; SHAREHOLDERS ; WEALTH;

Find related papers by JEL classification:
G3 - Financial Economics - - Corporate Finance and Governance
G12 - Financial Economics - - General Financial Markets - - - Asset Pricing

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This page was last updated on 2009-12-16.


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