The Value Impact of Corporate Collaboration
A significant body of research has addressed the effects of strategic alliances and joint ventures on firm value, although the breadth of prior eventstudy research is not as great as for M&A announcements.This chapter provides an overview of existing evidence for the value firms create by corporate collaboration. This encompasses all value-related research (in particular, event studies) on alliance formation, termination, and other events relating to them.
Rather than only reviewing value-related alliance research, however, this chapter appraises the value-related empirical support for the propositions derived in chapter 2. Such a comparison allows identifying achievements and limitations of existing event-study literature. On the one hand, factors found significant in prior event studies may be necessary controls for future research efforts. On the other hand, propositions not yet tested in a value-related context represent areas for future research. Consequently, this investigation is prerequisite for the subsequent empirical analysis. The present chapter proceeds as follows: Subchapter 3.1 reviews the overall impact of strategic alliances and joint venture formation as well as termination on shareholder value. Subchapter 3.2 addresses the drivers of cross-sectional variation in valuation effects. Finally, subchapter 3.3 discusses the achievements and shortcomings of prior value-related research vis-à-vis the broader spectrum of potential explanations raised in the preceding chapter. It culminates in deriving the hypotheses to be empirically tested.
KeywordsAbnormal Return Initial Public Offering Strategic Alliance Focal Firm International Joint Venturis
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