Shareholder Wealth Effects of Joint Venture Strategies: Theory and Evidence from the Netherlands

17 Pages Posted: 11 Mar 2002

See all articles by Gertjan Schut

Gertjan Schut

affiliation not provided to SSRN

Ruud A.I. van Frederikslust

Erasmus University Rotterdam (EUR) - Department of Financial Management

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

Schut, Gertjan and van Frederikslust, Ruud A.I., Shareholder Wealth Effects of Joint Venture Strategies: Theory and Evidence from the Netherlands (October 2001). EFA 2002 Berlin Meetings Discussion Paper. Available at SSRN: https://ssrn.com/abstract=302007 or http://dx.doi.org/10.2139/ssrn.302007

Gertjan Schut

affiliation not provided to SSRN

Ruud A.I. Van Frederikslust (Contact Author)

Erasmus University Rotterdam (EUR) - Department of Financial Management ( email )

P.O. Box 1738
Room T09-53
3000 DR Rotterdam
Netherlands
+31 10 408 2790 (Phone)
+31 10 408 9017 (Fax)

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