Stock Market Reactions of Joint Ventures and the Subsequent Changes: Evidence from Japan  

Oleh:

Otsubo, Minoru

Jenis: Article from Proceeding
Dalam koleksi: SIBR-Thammasat 2014 Conference on Interdisciplinary Business & Economics Research June 5th- 7th, 2014 di Emerald Hotel Bangkok, page 1-25.
Topik: Joint venture; Divestiture; Corporate restructuring
Fulltext: b14-116.pdf (226.25KB)

Isi artikel

This study investigates the merits of joint venturescategorized by investment methods. There are several investment methods to form a joint venture by whether a firm employs financial or existing goods assets. This paper expects that the investment methods and changes of a joint venture prescribe the merit of a joint venture. Empirical results show that joint ventures formed by Japanese firms do not necessarily enhance their wealth because of coordination costs. On the other side, synergy effects occur in a joint venture which has a complementary relationship with firms involving the formation, regardless of investment methods. In addition, the wealth enhances when one of firmswhich form a joint venture acquires all ownership of the joint venture formed throughcombination of financial and goods investments. These results show that investment methods affect the wealth enhancement in change of a joint venture whereas they do not affect in the formation.

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