Browsing by Subject "Joint ventures"
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Item Conflict measurement in the distribution channel of joint ventures: an empirical investigation(Texas Tech University, 1984-05) Habib, Ghazi MahmoudNot availableItem Effects of Mergers and Acquisitions (M&A) and Joint Ventures on long-term firm performance and Idiosyncratic Risk(2012-08) Babanazarov, Bahtiyar; Hudson, Darren; Johnson, Phillip N.; Chidmi, Benaissa; Trindade, A. AlexandreThis dissertation is an empirical study of effects of mergers and acquisitions and joint ventures (MAJV) on the acquiring and participating firms’ long term ex-post performance and idiosyncratic risk. The research aims to extend the current knowledge on the acquirers’ and joint venture participants’ performance and risk. This objective not only reveals how the firms fare following the MAJV but also helps to understand the motives for corporate strategic decisions such as MAJV. The results show interindustrial variation in acquiring firms’ performance and idiosyncratic risk following the M&A. Acquirers from the food and pharmaceutical industries enjoy positive abnormal returns following M&A while acquirers from industries such as recreational products, entertainment, nonmetallic mining, construction, and real estate lose their wealth following the M&A. Acquiring firms, in general, enjoy lower idiosyncratic risk following the M&A compared to other firms in their industries that did not engage in M&A. The study of joint ventures reveal that firms that form joint ventures gain positive abnormal returns following the joint venture formation and their idiosyncratic risk is significantly lower than the firms that did not engage in joint ventures but are in the same industry. The results support the findings of previous literature which suggests that joint ventures create synergy.Item Joint business ventures in Mexico(Texas Tech University, 1968-06) Lombardo, Thomas JulianNot availableItem The joint-venture paradox: parent-firm characteristics, social cues, and joint venture performance(2005) Stern, Ithai; Henderson, Andrew Duane; Davis-Blake, AlisoneA popular belief in both academic and business quarters is that joint ventures (JVs) are inherently unstable and short lived. This study questions this premise by arguing that the high failure rate of JVs observed in prior studies is in part an outcome of a selection process, in which, paradoxically, out of all possible JVs, the ones that are most likely to be formed are also the ones that are most likely to fail. That happens, I argue, because some of the same factors that increase a firm’s likelihood of joint venturing may actually decrease JV performance. Specifically, drawing on the resourcebased-view of the firm, transaction cost economies, industrial organization economics, and institutional theory, I develop the hypothesis that in technology-intensive industries, where the range of technical know-how needed to stay abreast of rapidly changing developments exceeds the capabilities of any single firm, a potential partner’s age, size, prior success, along with the number of JVs previously created in a firm’s environment increase its propensity to joint venture but decrease its ability to do so successfully. That happens, I argue, because in selecting partners, executives seek readily available markers of legitimacy and capability, which unintentionally steer them to inertial partners that do not adapt well, a vital attribute of new ventures in rapidly changing, technology-intensive industries. In contrast to prior research, which has focused either on factors that influence a firm’s likelihood of joint venturing or on factors that affect JV performance, but not on both simultaneously, I develop a two-stage model, in which I first examine factors affecting a JV’s likelihood of being formed. Then, using a Heckman procedure (Heckman, 1979), I incorporate estimates of parameters from the first model into a second model, in which I use event history analysis to predict JV performance. Data on JVs created in twenty-six technology-intensive industries by publicly traded firms in the United States between 1986 and 2001 strongly supports the study’s premise that paradox exists in JV formation process, in which executives are drawn to partners that lack the flexibility needed to sustain a new venture.