Bankruptcy spillover effects on strategic alliance partners

• 成果类型: Article
• 署名作者: Boone, Audra L.; Ivanov, Vladimir I.
• 署名单位: Texas A&M University System; Texas A&M University College Station; Mays Business School; U.S. Securities & Exchange Commission (SEC)
• 刊物名称: JOURNAL OF FINANCIAL ECONOMICS
• ISSN/ISSBN: 0304-405X
• DOI: 10.1016/j.jfineco.2011.10.003
• 发表日期: 2012
• 页码: 551-569
• 关键词: Strategic alliance; Joint venture; bankruptcy; Spillover effects

摘要

This paper examines whether a party to a strategic alliance or joint venture suffers from spillover effects when the other partner files for bankruptcy. We find that the non-bankrupt strategic alliance partners, on average, experience a negative stock price reaction around their partner firm's bankruptcy filing announcement. This negative effect is strongest for longer partnerships and those with higher returns at the announcement of the initial alliance formation. Furthermore, horizontal alliance firms in declining industries have lower returns, indicating that industry conditions can exacerbate expected problems for the non-bankrupt firm. Non-bankrupt partners also experience drops in profit margins and investment levels in the subsequent two years with the worst performance concentrated among the longer-term agreements. There is very little impact on the returns or performance for joint venture partners, which suggests that these agreements are more insulating for the partner firm. (C) 2011 Elsevier B.V. All rights reserved.