An examination of the determinants of stock price effects of US-Chinese joint venture announcements

Louis T. W. Cheng, Joseph K. W. Fung and Kin Lam

International Business Review, 1998, vol. 7, issue 2, 151-161

Abstract: This paper examines the announcement effects of US-Chinese joint ventures and explores several firm-specific factors which may affect the size of the abnormal returns. A sample of 103 joint ventures during the 1973-1993 period and eight variables, including current ratio, debt ratio, total asset turnover ratio, return on equity, industry classification, prior experience in China, location of headquarters and the date of the joint venture announcement, are used in the study. A significant 3-day cumulative abnormal return of 1.02% is found in the total sample. However, sub-sample and regression analyses show that none of the factors influence the size of the abnormal gains.

Keywords: Joint; venture; FDI (search for similar items in EconPapers)
Date: 1998
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Citations: View citations in EconPapers (12)

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