| Summary: | 碩士 === 國立成功大學 === 國際企業研究所碩博士班 === 94 === Abstract
As joint ventures have become more central to parent firms’corporate and international strategies, managing joint venture dynamics has also increased in importance. At present, many
papers have already discussed the reasons of how the stock market reacts for joint venture formations, but, in fact, a few of papers discuss the joint venture terminations and the relationship between them.
This paper will discuss the relationship between the joint venture formations and terminations. We use the event study and focus on three questions: (1) in the stock market, whether or not there is a relationship between joint venture formations and terminations, (2) when the joint ventures are terminated and achieve their original purposes, whether or not these parent firms can experience greater increases in market value than those parent firms that don’t achieve their original purposes, (3) when the joint ventures are terminated, whether or not the different terminative types (acquisition or divestiture) will have the different stock reactions in different degrees of the purpose completion (completion or incompletion).
Our result shows that the joint venture formations have a significantly negative relationship with the joint venture terminations in the stock price reaction. That is, the joint venture formations could influence the terminations in the stock market. Furthermore, we find that the shareholders experience wealth gain at the joint venture terminations if the parent firms can complete
their original purposes which they want to achieve at the joint venture formations. Finally, the types of the joint venture terminations do not influence the shareholder value at the joint venture termination. The different types of joint ventures have the
similar consequences at the terminations.
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