Abstract
Based on the transactional theory of international joint ventures, we examine the stock price reactions for B-shares of the Chinese partners during the Sino-foreign venture announcements. Significant and positive announcement effects are found in the Shanghai and Shenzhen stock markets. We also attempt to identify determinants of the shareholders value creation. Four variables, namely geographic origin, size of foreign partners, status of Chinese partners and China's country risk, are found to be significant in the regression models.
Original language | English |
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Pages (from-to) | 325-341 |
Number of pages | 17 |
Journal | International Journal of Business |
Volume | 12 |
Issue number | 3 |
Publication status | Published - 2007 |
Keywords
- Joint ventures
- Stock price reaction
- International investment
ASJC Scopus subject areas
- Business and International Management
- Strategy and Management
- Economics and Econometrics
- Finance