IDEAS home Printed from
MyIDEAS: Log in (now much improved!) to save this article

Stock market valuation of joint venture sell-offs

Listed author(s):
  • Pierre-Xavier Meschi

    ([1] Université de la Méditerranée (Aix-Marseille II), France [2] Euromed Marseille – Ecole de Management, Marseille Cedex, France)

Registered author(s):

    This article examines the stock market performance implications of joint venture (JV) partner sell-offs using a resource-based view and an event study methodology. More specifically, it proposes hypotheses putting into evidence the stock market valuation of different reasons for JV sell-offs (refocusing of a business, debt reduction, and JV failure). Abnormal returns (ARs) from JV sell-offs are estimated for a sample of 151 European selling partners. First, the results show that stock market reactions observed around the date of announcement are significant and positive. This finding is consistent with that of finance research literature on stock market reactions to ordinary asset sales. This leads us to discount the idea that stock markets place a specific valuation on JV sell-offs. Second, the results indicate that the reasons for JV sell-offs are a determinant of ARs of selling partners. Journal of International Business Studies (2005) 36, 688–700. doi:10.1057/palgrave.jibs.8400162

    If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.

    File URL:
    File Function: Link to full text PDF
    Download Restriction: Access to full text is restricted to subscribers.

    File URL:
    File Function: Link to full text HTML
    Download Restriction: Access to full text is restricted to subscribers.

    As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.

    Article provided by Palgrave Macmillan & Academy of International Business in its journal Journal of International Business Studies.

    Volume (Year): 36 (2005)
    Issue (Month): 6 (November)
    Pages: 688-700

    in new window

    Handle: RePEc:pal:jintbs:v:36:y:2005:i:6:p:688-700
    Contact details of provider: Web page:

    Web page:

    Order Information: Web:

    No references listed on IDEAS
    You can help add them by filling out this form.

    This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

    When requesting a correction, please mention this item's handle: RePEc:pal:jintbs:v:36:y:2005:i:6:p:688-700. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Sonal Shukla)

    or (Rebekah McClure)

    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.

    This information is provided to you by IDEAS at the Research Division of the Federal Reserve Bank of St. Louis using RePEc data.