Shareholder Wealth Effects of Joint Venture Strategies: Theory and Evidence from the Netherlands
17 Pages Posted: 11 Mar 2002
Date Written: October 2001
Abstract
We investigate the shareholder wealth effects of 233 joint venture announcements of Dutch public companies in the period 1987 till 1998. The research shows that, on average, establishing joint ventures has a positive effect on the market value of Dutch companies. The results indicate that joint ventures are preferred when a company is under pressure. Our research also shows that the factors of strategic intention, the environment in which the strategy is unfolded and the extent to which the company has control over the implementation strongly explains the extent to which a joint venture can create value.
Keywords: Joint venture strategy, Shareholders value
JEL Classification: G14, G15, G34, F23
Suggested Citation: Suggested Citation
Do you have negative results from your research you’d like to share?
Recommended Papers
-
New Evidence and Perspectives on Mergers
By Gregor Andrade, Mark L. Mitchell, ...
-
Do Managerial Objectives Drive Bad Acquisitions?
By Randall Morck, Andrei Shleifer, ...
-
Stock Market Driven Acquisitions
By Andrei Shleifer and Robert W. Vishny
-
Stock Market Driven Acquisitions
By Andrei Shleifer and Robert W. Vishny
-
Poison or Placebo? Evidence on the Deterrent and Wealth Effects of Modern Antitakeover Measures
By Robert Comment and G. William Schwert
-
Does Corporate Performance Improve after Mergers?
By Paul M. Healy, Krishna Palepu, ...
-
Managerial Performance, Tobin's Q, and the Gains from Successful Tender Offers
By Larry H.p. Lang, Ralph A. Walkling, ...