Stock market valuation of joint venture sell-offs

• 成果类型: Article
• 署名作者: Meschi, PX
• 署名单位: Aix-Marseille Universite
• 刊物名称: JOURNAL OF INTERNATIONAL BUSINESS STUDIES
• ISSN/ISSBN: 0047-2506
• DOI: 10.1057/palgrave.jibs.8400162
• 发表日期: 2005
• 页码: 688-700
• 关键词: joint venture sell-off; stock market valuation; resource-based view

摘要

This article examines the stock market performance implications of joint venture (JV) partner sell-offs using a resource-based view and an event study methodology. More specifically, it proposes hypotheses putting into evidence the stock market valuation of different reasons for JV sell-offs (refocusing of a business, debt reduction, and JV failure). Abnormal returns (ARs) from JV sell-offs are estimated for a sample of 151 European selling partners. First, the results show that stock market reactions observed around the date of announcement are significant and positive. This finding is consistent with that of finance research literature on stock market reactions to ordinary asset sales. This leads us to discount the idea that stock markets place a specific valuation on JV sell-offs. Second, the results indicate that the reasons for JV sell-offs are a determinant of ARs of selling partners.