C39 CN Tutorial 5 - Joint Ventures and Strategic Alliances Answers.doc

Analyzed 767 announcements including joint ventures

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Analyzed 767 announcements including joint ventures as well as other strategic initiatives Their sub-sample of just the joint ventures showed positive COURSE NOTES: TUTOR CODE TITLE
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SCHOOL OF MANAGEMENT AND LANGUAGES 3 shareholder wealth effects Johnson & Houston Analyzed 191 joint ventures (1991-1995) Found overall positive shareholder wealth effects for joint ventures 1.67% Sub-samples: Horizontal: lower gains than vertical ventures Gains shared more or less equal by venture participants Vertical joint ventures: had average gains of 2.67% Suppliers got 70% of the gains Buyers realized less of the gains So for joint ventures: horizontal lower returns than vertical 7. What are the main empirical findings for strategic alliances? Chan, Kensinger, Keown and Martin (1997) Analyzed 345 strategic alliances 1983-1992 Found majority of alliances for marketing and distribution Found positive abnormal returns 0.64% Das, Sen and Sengupta (1988) Looked at 4,192 alliances Found greater gains when larger partners joined with smaller partners as opposed to both being big Kale Dyer and Singh (2002) Analyzed 78 companies which reported 1,572 alliances Found firms that had more experience with alliances tended to do better with them COURSE NOTES: TUTOR CODE TITLE
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  • Fall '17
  • JPM
  • FTSE 100 Index, joint venture, Joint Ventures and Strategic Alliances

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