An examination of the determinants of stock price effects of US-Chinese joint venture announcements

Louis T.W. Cheng*, Joseph K W FUNG, Kin Lam

*Corresponding author for this work

    Research output: Contribution to journalArticlepeer-review

    20 Citations (Scopus)

    Abstract

    This paper examines the announcement effects of US-Chinese joint ventures and explores several firm-specific factors which may affect the size of the abnormal returns. A sample of 103 joint ventures during the 1973-1993 period and eight variables, including current ratio, debt ratio, total asset turnover ratio, return on equity, industry classification, prior experience in China, location of headquarters and the date of the joint venture announcement, are used in the study. A significant 3-day cumulative abnormal return of 1.02% is found in the total sample. However, sub-sample and regression analyses show that none of the factors influence the size of the abnormal gains.

    Original languageEnglish
    Pages (from-to)151-161
    Number of pages11
    JournalInternational Business Review
    Volume7
    Issue number2
    DOIs
    Publication statusPublished - Apr 1998

    Scopus Subject Areas

    • Business and International Management
    • Finance
    • Marketing

    User-Defined Keywords

    • FDI
    • Joint venture

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