Alliance Formation and Firm Value

• 成果类型: Article
• 署名作者: Cabral, Luis; Pacheco-de-Almeida, Goncalo
• 署名单位: New York University; Centre for Economic Policy Research - UK; Hautes Etudes Commerciales (HEC) Paris
• 刊物名称: MANAGEMENT SCIENCE
• ISSN/ISSBN: 0025-1909
• DOI: 10.1287/mnsc.2017.2954
• 发表日期: 2019
• 页码: 879-895
• 关键词: firm alliances; matching; Competitive advantage

摘要

We consider the formation of alliances that potentially create complementarities, that is, when the value function is supermodular in firm resources. We show that, in a frictionless world where information is perfect and managers optimize, firm alliances disproportionately increase the value of high-resource-level firms, resulting in higher variance and higher skewness of the distribution of firm value; moreover, higher-value alliances are subject to regression to the mean at a faster rate. These effects are magnified if the degree of complementarities is endogenously determined by each firm's investment. We also consider alliances where matching and/or information about firm resources are imperfect, and show that complementarities are a necessary but not sufficient condition for alliances to cause an increase in firm value; and that complementarities are neither a necessary nor a sufficient condition for alliances to be correlated with higher firm value.