Analyzing joint ventures as corporate control activity

Understanding partial mergers in Japan

“…large firms in contrast to 6.7 (4.6) % for small firms. This finding that total mergers mainly benefit the small firm's shareholders is consistent with Inoue and Kato's (2006) earlier evidence on Japanese M&As as well as US evidence supplied by Slovin et al (2007) among others. Abnormal returns to partial mergers do not exhibit such asymmetry as one would expect from the very similar equal-and value-weighted portfolio returns.…”

“…The finding that investors react more to total mergers are consistent with Slovin et al (2007) who have reported a similar gap between abnormal returns to JV and merger announcements based on US data. A noteworthy pattern in the present data is that the gap narrows substantially when the value-weighted portfolio returns are compared.…”

“…14 The stock market therefore reacts positively to partial merger announcements despite the potentially large costs of joint ownership and management. The estimated equal-weighted returns are comparable to JV announcement returns in the US reported by McConnell and Nantell (1985), Johnson and Houston (2000), and Slovin et al (2007) among others.…”

“…*** Significant at the 0.01 level. 15 McConnell and Nantell (1985) and Slovin et al (2007) find that JVs announced by US firms create greater shareholder wealth for large firms even though the mean abnormal return is greater for small firms in their data. 16 Partial mergers involving three firms are excluded from this comparison because none of the sample total mergers involves more than two firms.…”

Uma compreensão da formação e pós-formação de alianças estratégicas no setor de TI

“…A formação de alianças estratégicas, em especial as JVs, permite às empresas: obter economia de escala e de escopo em suas atividades, utilizar ativos e habilidades complementares, transferir conhecimento, e inclusive acessar o conhecimento do outro parceiro (SLOVIN et al, 2007). Esses mesmos autores indicam que um parceiro também poderá aplicar esse conhecimento em projetos fora da JV, elevando seus ganhos independentes e o aprendizado de suas externalidades.…”