This paper examines the valuation impact of U.S. multinational corporations' expansion into the Peoples Republic of China during 1979 to 1987. The market response to the announcement of a firm's initial entry into the Peoples Republic of China is found to be positive and statistically significant, suggesting that expansion into China was a value-enhancing activity. Equity joint venture modes of entry are found to result in greater shareholder gains than nonequity expansion modes. The influence of degree of multinationality, market share, growth, and technology-related variables on the size of shareholder gains is also analyzed. Coauthors are Carl B. McGowan, Jr., Lalatendu Misra, and Agnes Missirian. Copyright 1991 by MIT Press.
Managing joint venture (JV transitions can have implications for parent firm performance as JVs become important, albeit temporary, instruments of firms' corporate and international strategies. This study examines the average shareholder wealth effects of five specific types of JV termination. Empirical evidence from U.S. firms terminating domestic and international JVs reveals venture termination neither positively nor negatively influences firm value on average, and no one type of JV termination is superior to its alternatives in general.
this failure of Europanization in these countries is correlated with the preferences of the ruling elites in these countries.