Corporate equity ownership, strategic alliances, and product market relationships

• 成果类型: Article
• 署名作者: Allen, JW; Phillips, GM
• 署名单位: Southern Methodist University; University System of Maryland; University of Maryland College Park
• 刊物名称: JOURNAL OF FINANCE
• ISSN/ISSBN: 0022-1082
• DOI: 10.1111/0022-1082.00307
• 发表日期: 2000
• 页码: 2791-2815
• 关键词: research-and-development; vertical integration; large shareholders; COSTS; liquidity; benefits

摘要

This paper examines long-term block ownership by corporations and performance changes in firms with corporate block owners. We also examine potential reasons for corporate ownership including benefits in product market relationships, alleviation of financing constraints, and board monitoring by corporate owners. We find the largest significant increases in targets' stock prices, investment, and operating profitability when ownership is combined with alliances, joint ventures, and other product market relationships between purchasing and target firms, especially in industries with high research and development. Our findings are consistent with the conclusion that block ownership by corporations has significant benefits in product market relationships.