An event study of the effects of partner and location cultural differences in joint ventures

✍ Scribed by Sangphet Hanvanich; Stewart R. Miller; Malika Richards; S.Tamar Cavusgil

• Publisher: Elsevier Science
• Year: 2003
• Tongue: English
• Weight: 88 KB
• Volume: 12
• Category: Article
• ISSN: 0969-5931
• DOI: 10.1016/s0969-5931(02)00085-9

✦ Synopsis

This study focuses on one of the most important aspects of domestic joint venture and international joint venture (IJV) formation: culture difference. The study adapts the Makino and Beamish (1998) ownership-structure classification of IJVs and empirically examines the effects of JV partner and JV location cultural differences. Using an event-study methodology, our results reveal the impact of cultural difference on shareholder value creation. The article discusses the implications of using cultural difference measures in international research.