Market valuation of joint ventures: Joint venture characteristics and wealth gains

Journal of Business Venturing

Volumn 12, Issue 2, 1997, Pages 83-108

  Park, Seung Ho ^a   Dongcheol, Kim ^b  

^a UNIVERSITY OF TEXAS AT DALLAS   (United States)

^b NONE

Author keywords

[No Author keywords available]

Indexed keywords

EID: 0031092306     PISSN: 08839026     EISSN: None     Source Type: Journal    
DOI: 10.1016/S0883-9026(96)00036-5     Document Type: Article

References (81)

1. Akerlof, G.A. 1970. The market for "Lemons": Quality uncertainty and the market mechanism. Quarterly Journal of Economics 84:488-500.
2. Allen, F. 1993. Strategic management and financial markets. Strategic Management Journal 14:11-22.
3. Alston, L.J., and Gillespie, W. 1989. Resource coordination and transaction costs. Journal of Economic Behavior and Organization 11:191-212.
4. Axelrod, R. 1984. The Evolution of Cooperation. New York: Basic Books.
5. Balakrishnan, S., and Koza, M.P. 1993. Information asymmetry, adverse selection and joint ventures. Journal of Economic Behavior and Organization 20:99-117.
6. Barney, J. 1988. Returns to bidding firms in mergers and acquisitions: Reconsidering the relatedness hypothesis. Strategic Management Journal 9:71-78.
7. Bettis, R.A., and Hall, W.K. 1982. Diversification strategy, accounting determined risk and accounting determined return. Academy of Management Journal 25:254-264.
8. Biggadike, R. 1979. The risky business of diversification. Harvard Business Review 79(5):103-111.
9. Blodgett, L.L. 1991. Partner contributions as predictors of equity share in international joint ventures. Journal of International Business 66:63-78.
10. Bowman, E.H., and Hurry, D. 1993. Strategy through the option lens: An integrated view of resource investments and the incremental-choice process. Academy of Management Journal 18(4):760-782.
11. Bradley, M., Desai, A., and Kim, E.H. 1983. Specialized resources and competition in the market for corporate control. Working paper, University of Michigan, Ann Arbor.
12. Brown, S., and Warner, J. 1985. Using daily stock returns: The case of event studies. Journal of Financial Economics March:3-31.
13. Business Week. 1984. Will money managers wreck the economy? August 13, pp. 86-93.
14. Chaganti, R., and Damanpour, F. 1991. Institutional ownership, capital structure, and firm performance. Strategic Management Journal 12:479-491.
15. Child, J., Markoczy, L., and Cheung, T. 1992. Managerial adaptation in Chinese and Hungarian strategic alliances with culturally distinct foreign partners. Working paper, University of Cambridge.
16. Cohen, W.M., and Levinthal, D.A. 1990. Absorptive capacity: A new perspective on learning and innovation. Administrative Science Quarterly 35:128-152.
17. Contractor, F.J., and Lorange, P. 1988. Cooperative Strategies in International Joint Ventures. Lexington, MA: Lexington Books.
18. Cordeiro, J.J. 1993. The role of director interlocks, governance, and management incentives in explaining stockholder gains from joint ventures. Academy of Management Best Papers Proceedings 1993: 12-16.
19. Deeds, D.L., and Hill, C.W. 1995. Strategic alliances and the rate of new product development: An empirical study of entrepreneurial biotechnology firms. Journal of Business Venturing 11:41-58.
20. Demsetz, H. 1983. The structure of ownership and the theory of the firm. Journal of Law and Economics 26:375-390.
21. Doz, Y.L. 1988. Technology partnerships between larger and smaller firms: Some critical issues. In F. Contractor and P. Lorange, eds., Cooperative Strategies for International Business. Lexington, MA: Lexington Books.
22. Drucker, P.F. 1986. A crisis of capitalism. Wall Street Journal September 30, p. 31.
23. Duncan, J.L. 1982. Impacts of new entry and horizontal joint ventures on industrial rates of return. Review of Economics and Statistics 64:120-125.
24. Eisenhardt, K. 1989. Agency theory: An assessment and review. Academy of Management Review 14:57-74.
25. Fagre, N., and Well, L.T. 1982. Bargaining power of multinationals and host governments. Journal of International Business fall:9-23.
26. Fama, E.F. 1970. Efficient capital marekts: A review of theory and empirical work. Journal of Finance 25:383-417.
27. Fama, E.F. 1976. Foundations of Finance. New York: Basic Books.
28. Finnerty, J.E., Owers, J.E., and Rogers, R.C. 1986. The valuation impact of joint ventures. Management International Review 26:14-26.
29. Froot, K.A., and Stein, J.C. 1991. Exchange rates and foreign direct investment: An imperfect capital market approach. Quarterly Journal of Economics 106:1191-1217.
30. Geringer, J.M., and Hebert, L. 1989. Control and performance of international joint ventures. Journal of International Business Studies Summer:235-254.
31. Gerlach, M. 1990. Socially bounded rationality: A case study in the limits to international business alliances. Working paper, Walter A. Haas School of Business, University of California, Berkeley.
32. Graves, S.B. 1988. Institutional ownership and corporate R&D in the computer industry. Academy of Management Journal 31:417-428.
33. Gulati, R. 1995. Does familiarity breed trust? The implications of repeated ties for contractual choice in alliances. Academy of Management Journal 38(1):85-112.
34. Hamel, G., Doz, Y.L., and Prahalad, C.K. 1989. Collaborate with your competitors - and win. Harvard Business Review January-February:133-139.
35. Harrigan, K.R. 1988. Joint venture: A mechanism for creating strategic change. In A. Pettigrew, ed., The Management of Strategic Change. Cambridge, MA: Basil Blackwell.
36. Hennart, J. 1988. A transaction costs theory of equity joint ventures. Strategic Management Journal 4:361-374.
37. Hill, C., and Snell, S.A. 1989. Effects of ownership structure and control on corporate productivity. Academy of Management Journal 32:25-46.
38. Hladik, K.J. 1985. International Joint Ventures. Lexington, MA: Lexington Books.
39. Holton, R.E. 1981. Making international joint ventures work. In L. Otterbeck, ed. Management of Headquarters - Subsidiary Relationships in Multinational Corporations. New York: Martins Press.
40. Hurry, D. 1993. Restructuring in the global economy: The consequences of strategic linkages between Japanese and U.S. firms. Strategic Management Journal 14:69-82.
41. Hymer, S.H. 1976. The International Operations of National Firms: A Study of Direct Foreign Investment. Cambridge, MA: MIT Press.
42. Jarillo, J.C. 1988. On strategic networks. Strategic Management Journal 9:31-41.
43. Jensen, M.C., and Meckling, W.H. 1976. Theory of the firm: Managerial behavior, agency costs, and ownership structure. Journal of Financial Economics 3:305-360.
44. Kang, J.K. 1993. The international market for corporate control. Journal of Financial Economics 34:345-371.
45. Killing, J.P. 1983. Strategies for Joint Venture Success. New York: Praeger.
46. Kogut, B. 1988. Joint ventures: Theoretical and empirical perspectives. Strategic Management Journal 9:319-332.
47. Kogut, B. 1989. The stability of joint ventures: Reciprocity and competitive rivalry. Journal of Industrial Economics 38(2):183-198.
48. Kogut, B. 1991. Joint ventures and the option to expand and acquire. Management Science 37:9-33.
49. Koh, J., and Venkatraman, N. 1991. Joint venture formations and stock market reactions: An assessment in the information technology section. Academy of Management Journal 34(4):869-892.
50. Lane, H.W., and Beamish, P.W. 1990. Cross-cultural cooperative behavior in joint ventures in LDCs. Management International Review Fall:411-432.
51. Larson, A. 1992. Network dyads in entrepreneurial settings: A study of the governance of exchange relationships. Administrative Science Quarterly 37:76-104.
52. Lubatkin, M. 1987. Merger strategies and stockholder value. Strategic Management Journal 8:39-53.
53. McConnell, J., and Muscarella, C. 1985. Corporate capital expenditure decisions and the market value of the firm. Journal of Financial Economics 14:399-422.
54. McConnell, J.J., and Nantell, T.J. 1985. Corporate combinations and common stock returns: The case of joint ventures. Journal of Finance 14:519-536.
55. Mintzberg, H. 1978. Patterns in strategy formulation. Management Science May:934-948.
56. Morck, R., Shleifer, A., and Vishny, R. 1990. Characteristics of hostile and friendly takeover targets. In A.J. Auerback, ed., Takeovers: Causes and Consequences. Chicago, IL: University of Chicago Press.
57. Murray, A.I., and Siehl, C. 1989. Cooperative linkages: Strategy in action. Working draft prepared for Financial Executives Research Foundation.
58. Nohria, N., and Eccles, R.G. 1992. Networks and Organizations. Boston, MA: Harvard Business School Press.
59. Osborn, R.N., and Baughn, C.C. 1990. Forms of interorganizational governance for multinational alliances. Academy of Management Journal 33(3):503-519.
60. Park, S.H., and Russo, M. 1996. When competition eclipses cooperation: An event history analysis of joint venture failure. Management Science 42(6):875-890.
61. Parkhe, A. 1993. The structuring of strategic alliances: A game-theoretic and transaction-cost examination of interfirm cooperation. Academy of Management Journal 36(3):794-829.
62. Pennings, J.M., and Harianto, F. 1992. The diffusion of technological innovation in the commercial banking industry. Strategic Management Journal 13:29-46.
63. Pfeffer, J., and Nowak, P. 1976. Joint ventures and interorganizational interdependence. Aministrative Science Quarterly 21:398-418.
64. Pisano, G.P. 1989. Using equity participation to support exchange: Evidence from the biotechnology industry. Journal of Law, Economics, and Organization 5(1):109-126.
65. Porter, M., and Fuller, M. 1985. Coalitions and global strategy. In M. Porter, ed., Competition in Global Industries. Boston, MA: Harvard Business School Press.
66. Rappaport, A. 1986. Creating Shareholder Value. New York, NY: Free Press.
67. Ravenscraft, D., and Scherer, F.M. 1982. The lag structure of returns to research and development. Applied Economics 14:603-620.
68. Reich, R.B., and Menkin, E.D. 1986. Joint ventures with Japan given away our future. Harvard Business Review 64(2):78-139.
69. Riggs, H. 1989. Marketing High-Tech Industry. Los Angeles. CA: Dallantin Publishing.
70. Rumelt, R.P.M. 1974. Strategy, Structure, and Economic Performance. Boston, MA: Harvard Business School Press.
71. Scholes, M., and Williams, J. 1977. Estimating beats from nonsynchronous data. Journal of Financial Economics 5:309-327.
72. Seth, A. 1990. Value creation in acquisitions: A reexamination of performance issues. Strategic Management Journal 11:99-115.
73. Shan, W., and Hamilton, W. 1991. Country-specific advantage and international cooperation. Strategic Management Journal 12:419-432.
74. Shapiro, D.L., Sheppard, B.H., and Cheraskin, L. 1992. In theory: Business on a handshake. Negotiation Journal 8:365-377.
75. Singh, H., and Montgomery, C. 1987. Corporate acquisition strategies and economic performance. Strategic Management Journal 8:377-386.
76. Stevenson, H.H., and Jarillo, J.C. 1990. A paradigm of entrepreneurship: Entrepreneurial management. Strategic Management Journal 11:17-27.
77. Teece, D.J. 1980. Economies of scope and the scope of the enterprise. Journal of Economic Behavior and Organization 1:223-247.
78. Williamson, O.E. 1985. The Economic Institutions of Capitalism: Firms, Markets, Relational Contracting. New York: The Free Press.
79. Wissema, J.G., and Euser, L. 1991. Successful innovation through intercompany networks. Long Range Planning 24:33-39.
80. Woolridge, J.R., and Snow, C.C. 1990. Stock market reaction to strategic investment decisions. Strategic Management Journal 11:353-363.
81. Zahra, S.A., and Covin, J.G. 1995. Contextual influences on the corporate entrepreneurship-performance relationship: A longitudinal analysis. Journal of Business Venturing 10:43-58.