A comparison of the shareholder wealth effects of firms announcing domestic and international joint ventures

Abstract

In this paper, we provide a comprehensive analysis and comparison of the shareholder wealth effects associated with announcements of domestic and international joint ventures in Australia. In addition, we attempt to determine the source of the wealth effects and how they vary across domestic and international joint ventures. The wealth effects are examined for a sample of 87 domestic and 90 international joint venture announcements made by publicly-listed Australian firms during June 1988-May 1996. To the best of our knowledge, this is the first study that examines the valuation of joint ventures for Australian firms and provides a comprehensive comparison of the differences in wealth effect..