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The impacts of economic importance difference of a joint venture (JV) held by partners and partners' size difference on the extraction of rivalrous and non-rivalrous private benefits in a JV

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posted on 2023-06-21, 06:01 authored by Xiaoxiang ZhangXiaoxiang Zhang, Jie Wen
We investigate the impacts of economic importance difference of a JV held by partners and partners' size difference on the extraction of rivalrous and non-rivalrous private benefits in a JV. Focusing on 824 JV events during the period 2001–2012 in the global markets we find that, where the economic importance difference of a JV held by partners is large, a partner with a more economically important JV extracts more rivalrous type and non-rivalrous type of private benefits. Under the situation where partners' size difference is large, a smaller partner extracts more non-rivalrous type of private benefits. Whether arbitrage trading between two partners' shares outperforms the trading strategy of buy-hold two partners' shares during the JV announcement period depends on whether there are large private benefits available or not.

History

Publication status

  • Published

File Version

  • Accepted version

Journal

International Review of Financial Analysis

ISSN

1057-5219

Publisher

Elsevier

Volume

48

Page range

46-54

Department affiliated with

  • Business and Management Publications

Full text available

  • Yes

Peer reviewed?

  • Yes

Legacy Posted Date

2016-09-16

First Open Access (FOA) Date

2018-03-06

First Compliant Deposit (FCD) Date

2016-09-16

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