Corporate multinationalism, organizational learning, and market reaction to international joint ventures: Evidence from Taiwan

Shao Chi Chang, Ping Chang Huang

Research output: Contribution to journalArticlepeer-review

4 Citations (Scopus)

Abstract

This study examines the importance of corporate multinationalism and organizational learning in explaining the wealth effects of international joint ventures announcements in Taiwan. The evidence indicates that firms announcing international joint ventures into countries with no prior operational activity experience significantly favorable market response. In contrast, prior experience in international joint ventures does not explain the cross-sectional difference of announcement period abnormal returns. These findings remain the same even after controlling other explanatory variables. The evidence supports the positive multinational network hypothesis, but is inconsistent with organizational learning hypothesis.

Original languageEnglish
Pages (from-to)181-194
Number of pages14
JournalGlobal Finance Journal
Volume13
Issue number2
DOIs
Publication statusPublished - 2002 Oct 17

All Science Journal Classification (ASJC) codes

  • Finance
  • Economics and Econometrics

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