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

See all articles by Stephen F. Borde

Stephen F. Borde

University of Central Florida - College of Business Administration

Ann Marie Whyte

University of Central Florida

Kenneth J. Wiant

Tennessee Technological University - Economics, Finance, & Marketing

Lorrie L. Hoffman

Armstrong Atlantic State University

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Abstract

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

Borde, Stephen F. and Whyte, Ann Marie and Wiant, Kenneth J. and Hoffman, Lorrie L., New Evidence on Factors that Influence the Wealth Effects of International Joint Venture Announcements. Journal Of Multinational Financial Management, Vol. 8, 1998, Available at SSRN: https://ssrn.com/abstract=150154

Stephen F. Borde (Contact Author)

University of Central Florida - College of Business Administration ( email )

PO Box 161400
Orlando, FL 32816
United States
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407-823-6676 (Fax)

Ann Marie Whyte

University of Central Florida ( email )

4000 Central Florida Blvd
Orlando, FL 32816-1400
United States

Kenneth J. Wiant

Tennessee Technological University - Economics, Finance, & Marketing ( email )

Lorrie L. Hoffman

Armstrong Atlantic State University ( email )

11935 Abercorn Street
Savannah, GA 31419
912-927-5317 (Phone)
912-921-2083 (Fax)

HOME PAGE: http://www.armstrong.edu

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