New Evidence on Factors that Influence the Wealth Effects of International Joint Venture Announcements
Journal Of Multinational Financial Management, Vol. 8, 1998
Posted: 1 Mar 1999
We use a sample of 100 international joint ventures to explain why the results of previous studies on wealth effects have been inconclusive. We find that when US firms establish joint ventures in Asian countries, the market reaction is more favorable, but the market reaction is less favorable when joint ventures are established in lower risk developing countries. Also, the reaction is less favorable when the venture is a manufacturing operation. The results of this study help clarify variation in market reactions to international joint ventures.
Note: This is a description of the paper and not the actual abstract.
JEL Classification: F23, G12, G14
Suggested Citation: Suggested Citation