The Relationship between Ownership Structure and Synergy Benefit in Joint Venture

• Main Authors: Yin, Shuo-Ting, 尹碩廷
• Other Authors: Han, Chien-Shan
• Format: Others
• Language: zh-TW
• Published: 2008
• Online Access: http://ndltd.ncl.edu.tw/handle/42596246087484307757

碩士 === 輔仁大學 === 金融研究所 === 96 === This study is about build a game model to explain when firms using joint venture which is a part of strategy alliance. Despite of using joint venture to gain synergy, but that the profit which created by each firm would share by each other, because of this profit sharing effect that every firm in the alliance would want to be a free rider and this free rider problem would lower the profit when there exist no such free rider problem. So this study tries to solve free rider problem by using profit distribute and cross ownership in order to rise each firms effort and profit. The first purpose of this study is build a game model which represent firms using joint venture to gain synergy and profit, also shows that the free rider problem would appear in the model and we can find that the effort and profit are both lower than the efficiency criterion. By profit share we can find the optimal profit for the new joint venture company, but still can’t solve free rider problem perfectly. The second purpose of this study is follow by the original model build anteriorly. In order to solve free rider problem we put cross ownership into the model and we can tell that free rider problem could be solved by the means of cross ownership and both firm effort and profit rise close to the efficiency criterion.