Insider trading and the valuation of international strategic alliances in emerging stock markets

Stewart R Miller, Dan Li, Lorraine Eden () and Michael A Hitt
Additional contact information
Stewart R Miller: The University of Texas at San Antonio, San Antonio, TX, USA
Dan Li: Indiana University, Bloomington, IN, USA
Michael A Hitt: Texas A & M University, College Station, TX, USA

Journal of International Business Studies, 2008, vol. 39, issue 1, 102-117

Abstract: Because stock markets in emerging economies are relatively new, under-regulated, and often segmented, investors' responses to public announcements by firms in these economies may differ from responses in developed economies' stock markets. We draw on the institutional and corporate governance literatures to explain investor reactions to announcements of international strategic alliances (ISAs) between foreign and emerging-market firms. We argue that emerging economies' stock markets positively value ISAs; however, information leakages due to weak regulatory environments siphon off the “good news” before the ISA announcement date. The level of state ownership of publicly traded firms and the nationality of foreign partners both affect the size and timing of market reactions. Journal of International Business Studies (2008) 39, 102–117. doi:10.1057/palgrave.jibs.8400322

Date: 2008
References: Add references at CitEc
Citations: View citations in EconPapers (14)

Downloads: (external link)
http://www.palgrave-journals.com/jibs/journal/v39/n1/pdf/8400322a.pdf Link to full text PDF (application/pdf)
http://www.palgrave-journals.com/jibs/journal/v39/n1/full/8400322a.html Link to full text HTML (text/html)
Access to full text is restricted to subscribers.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:pal:jintbs:v:39:y:2008:i:1:p:102-117

Ordering information: This journal article can be ordered from
http://www.springer. ... nt/journal/41267/PS2

Access Statistics for this article

Journal of International Business Studies is currently edited by John Cantwell

More articles in Journal of International Business Studies from Palgrave Macmillan, Academy of International Business
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().