Do sino foreign joint ventures create shareholder value for Chinese partners

P.X. Meschi, Tsz Wan Cheng

Research output: Journal article publicationJournal articleAcademic researchpeer-review

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 languageEnglish
Pages (from-to)325-341
Number of pages17
JournalInternational Journal of Business
Volume12
Issue number3
Publication statusPublished - 2007

Keywords

  • Joint ventures
  • Stock price reaction
  • International investment

ASJC Scopus subject areas

  • Business and International Management
  • Strategy and Management
  • Economics and Econometrics
  • Finance

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