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Stock price reactions to Sino-European joint ventures

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  • Meschi, Pierre-Xavier
  • Cheng, Louis T. W.

Abstract

Do European investments in China create shareholders' value? The question is posed, but does not ask for a definite answer. Many factors have to be considered when analyzing the valuation effect of European direct investment in China and its determinants. The aim of this article is to better understand the real impact of the Sino-European joint venture announcements on the stock market value of the European partners. First of all, on the basis of an event study methodology, this article presents empirical observations of the share price reactions in different European stock markets to 68 Sino-European joint venture announcements.

Suggested Citation

  • Meschi, Pierre-Xavier & Cheng, Louis T. W., 2002. "Stock price reactions to Sino-European joint ventures," Journal of World Business, Elsevier, vol. 37(2), pages 119-126, July.
    • Handle: RePEc:eee:worbus:v:37:y:2002:i:2:p:119-126
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    References listed on IDEAS

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    1. Jerome Hubler & Pierre-Xavier Meschi, 2001. "European Direct Investment in China and Sino-French Joint Ventures," Post-Print hal-01839821, HAL.
    2. Jean‐Francois Hennart, 1988. "A transaction costs theory of equity joint ventures," Strategic Management Journal, Wiley Blackwell, vol. 9(4), pages 361-374, July.
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    6. John M. Abowd & George T. Milkovich & John M. Hannon, 1990. "The Effects of Human Resource Management Decisions on Shareholder Value," ILR Review, Cornell University, ILR School, vol. 43(3), pages 203-2-236-, April.
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    8. Cheng, Louis T. W. & Fung, Joseph K. W. & Lam, Kin, 1998. "An examination of the determinants of stock price effects of US-Chinese joint venture announcements," International Business Review, Elsevier, vol. 7(2), pages 151-161, April.
    9. Peter J Buckley, 1988. "The Limits of Explanation: Testing the Internalization Theory of the Multinational Enterprise," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 19(2), pages 181-193, June.
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    Cited by:

    1. Amici, Alessandra & Fiordelisi, Franco & Masala, Francesco & Ricci, Ornella & Sist, Federica, 2013. "Value creation in banking through strategic alliances and joint ventures," Journal of Banking & Finance, Elsevier, vol. 37(5), pages 1386-1396.
    2. Jing Yang & Frank Tipton & Jiatao Li, 2011. "A review of foreign business management in China," Asia Pacific Journal of Management, Springer, vol. 28(3), pages 627-659, September.
    3. Cristina López-Duarte & Esteban García-Canal, 2007. "Stock market reaction to foreign direct investments: Interaction between entry mode and FDI attributes," Management International Review, Springer, vol. 47(3), pages 393-422, June.
    4. Hanvanich, Sangphet & Richards, Malika & Miller, Stewart R. & Cavusgil, S. Tamer, 2005. "Technology and the effects of cultural differences and task relatedness: A study of shareholder value creation in domestic and international joint ventures," International Business Review, Elsevier, vol. 14(4), pages 397-414, August.
    5. Beamish, Paul W. & Lupton, Nathaniel C., 2016. "Cooperative strategies in international business and management: Reflections on the past 50 years and future directions," Journal of World Business, Elsevier, vol. 51(1), pages 163-175.
    6. Meschi, Pierre-Xavier, 2004. "Valuation effect of international joint ventures: does experience matter?," International Business Review, Elsevier, vol. 13(5), pages 595-612, October.
    7. Zheng Xiaosong & Zhang Jinming, 2011. "Factors Influencing International Joint Venture Performance in China," Annals - Economic and Administrative Series -, Faculty of Business and Administration, University of Bucharest, vol. 5(1), pages 167-184, December.

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