Choosing to cofinance: Analysis of project-specific alliances in the movie industry

• 成果类型: Article
• 署名作者: Palia, Darius; Ravid, S. Abraham; Reisel, Natalia
• 署名单位: Southern Methodist University; Rutgers University System; Rutgers University Newark; Rutgers University New Brunswick; Rutgers University System; Rutgers University New Brunswick; Cornell University
• 刊物名称: REVIEW OF FINANCIAL STUDIES
• ISSN/ISSBN: 0893-9454
• DOI: 10.1093/rfs/hhm064
• 发表日期: 2008
• 页码: 483
• 关键词: strategic alliances; joint ventures; OWNERSHIP; RISK; uncertainty; INFORMATION; COMPETITION; incentives; management; benefits

摘要

We use a movie industry project-by-project dataset to analyze the choice of financing a project internally versus financing it through outside alliances. The results indicate that project risk is positively correlated with alliance formation. Movie studios produce a variety of films and tend to develop their safest projects internally. Our findings are consistent with internal capital market explanations. We find mixed evidence regarding resource pooling, i.e., sharing the cost of large projects. Finally, the evidence shows that projects developed internally perform similarly to projects developed through outside alliances.