The impact of firm's ownership advantages and economic status of destination country on the wealth effects of international joint ventures

2000 ◽  
Vol 9 (1) ◽  
pp. 67-76 ◽  
Author(s):  
C.Joe Ueng ◽  
Seung H. Kim ◽  
C.Christopher Lee
Keyword(s):  
Joint Ventures ◽  
Economic Status ◽  
Destination Country ◽  
International Joint Ventures ◽  
Wealth Effects ◽  
International Joint ◽  
The Impact

New evidence on factors that influence the wealth effects of international joint ventures

1998 ◽  
Vol 8 (1) ◽  
pp. 63-77 ◽  
Author(s):  
Stephen F. Borde ◽  
Ann Marie Whyte ◽  
Kenneth J. Wiant ◽  
Lorrie L. Hoffman
Keyword(s):  
Joint Ventures ◽  
International Joint Ventures ◽  
Wealth Effects ◽  
International Joint ◽  
New Evidence

scholarly journals International Joint Ventures and Shareholder Value Creation: Evidence from Manufacturing and Non-manufacturing Sectors

2001 ◽  
Vol 26 (4) ◽  
pp. 21-34
Author(s):  
Hemant Merchant
Keyword(s):  
Capital Markets ◽  
Joint Ventures ◽  
Empirical Studies ◽  
Shareholder Value ◽  
International Joint Ventures ◽  
Actual Performance ◽  
Ex Post ◽  
International Joint ◽  
Ijv Performance ◽  
The Impact

Numerous empirical studies have suggested that the economic performance of international joint ventures (IJVs) is modest, at best. This suggestion may be inaccurate, however, since the studies' findings are based on ex post managerial perceptions of IJV performance that are found to be biased. Stated differently, there is a need to investigate IJV performance from ex ante “external* perspective—that of capital markets. Consequently, this study investigates the extent to which IJVformation announcements increase the shareholder value pf participating firms. Despite the merits of engaging a capital markets' perspective, it is necessary to investigate the extent to which capital markets are informationally ‘efflcient’- particularly given persistent doubts about whether capital markets really are as efficient as is widely accepted. Hence, this study compares IJV&' expected performance with their actual performance that is reported in other empirical studies. This study engages the event-study methodology to examine the impact of IJV formation announcements on the shareholder value of IJV parents, and tries to circumvent the methodology's principal limitations in doing so. Based on a sample of more than 500 IJVs, the study's findings indicate participation in IJVs increases parents' shareholder value by an average of approximately one per cent, albeit this figure varies across industry sectors (manufacturing; non-manufacturing) and firm size (large; small). Shareholder value is created for about 50 per cent Of firms in the sample. Moreover, the study's findings suggest that capital markets are informationally efficient

scholarly journals Ownership governance and performance in Spanish-Moroccan joint ventures

2013 ◽  
Vol 16 (3) ◽  
pp. 231-243 ◽  
Author(s):  
Maria Victoria Lopez-Perez ◽  
Maria Carmen Perez-Lopez ◽  
Lazaro Rodriguez-Ariza
Keyword(s):  
Joint Ventures ◽  
Positive Influence ◽  
Management Team ◽  
International Joint Ventures ◽  
The Other ◽  
International Joint ◽  
Form Part ◽  
And Performance ◽  
The Impact ◽  
Different Levels

This paper analyses the impact of ownership on performance by SMEs formed as Spanish-Moroccan international joint ventures (IJVs). In such SMEs, the functions and persons involved at different levels of governance – ownership, board and managers – often overlap. The results obtained from 210 SMEs suggest that owners often exert control by participating in the other mechanisms of governance. Their participation as members of the board has a positive influence on performance and thus the success of the IJV, but when owners form part of the management team (a less frequent situation), the influence on performance is negative and not significant. Participation by owners in the management team is not associated with the IJV’s performance.

The impact of organizational culture on competitiveness, effectiveness and efficiency in Spanish-Moroccan international joint ventures

2015 ◽  
Vol 44 (3) ◽  
pp. 364-387 ◽  
Author(s):  
M.Elena Gómez-Miranda ◽  
M.Carmen Pérez-López ◽  
Eva Argente-Linares ◽  
Lázaro Rodríguez-Ariza
Keyword(s):  
Organizational Culture ◽  
Joint Ventures ◽  
International Joint Ventures ◽  
International Joint ◽  
Effectiveness And Efficiency ◽  
The Impact

Culture distance and foreign equity ownership in international joint ventures

2010 ◽  
Vol 3 (3) ◽  
pp. 189-203 ◽  
Author(s):  
Qiangbing Chen ◽  
Yali Liu ◽  
Lu Jiang
Keyword(s):  
Internal Control ◽  
Joint Ventures ◽  
Cultural Distance ◽  
International Joint Ventures ◽  
Traditional View ◽  
Foreign Investors ◽  
Content Type ◽  
International Joint ◽  
Equity Ownership ◽  
The Impact

PurposeThe paper aims to study the impact of cultural differences on the ownership structure of international joint ventures in China. It is reasoned that foreign investors, when faced with larger culture‐related investment uncertainties, may have the incentive to acquire more control rights to contain the risks by acquiring more equity shares in the joint ventures.Design/methodology/approachData on international joint ventures in China were used to test the theory. The data contain 941 observations from Beijing, Shanghai, Shenzhen and Tianjing, covering a 13‐year time span. Pooled ordinary least square is used in the model estimation.FindingsCultural distance between China and foreign countries was found to increase the foreign equity share in the joint ventures, a finding contrary to traditional view. In addition, it was found that cultural distance in different dimensions does not play an equal role in affecting foreign equity shares. Last, there is significant evidence that the allocation of ownership between foreign and domestic investors in the joint ventures is influenced by the investor's relative importance in supplying different types of resources.Originality/valueThe paper introduces a new perspective into the study of culture and international joint venture. Foreign investors may be able to reduce investment risk by increasing equity shares, which gives them more internal control, in international joint ventures. In contrast, the traditional view is that larger cultural distance tends to discourage foreign equity ownership.

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