The wealth effect of Japanese-US strategic alliances

Shao Chi Chang, Sheng Syan Chen, Jung Ho Lai

Research output: Contribution to journalArticlepeer-review

18 Citations (Scopus)


We investigate the wealth impact for Japanese and US firms that announce nonequity strategic alliances. We find that on average, both Japanese and US shareholders benefit from the formation of international alliances. We also find that shareholders earn larger abnormal returns in these alliances when the partnering firms are relatively small in size, have higher growth opportunities, or are less profitable. We show that both Japanese and US partnering firms display significant improvements in operating performance over the three-year period subsequent to the formation of international alliances.

Original languageEnglish
Pages (from-to)271-301
Number of pages31
JournalFinancial Management
Issue number2
Publication statusPublished - 2008 Jun

All Science Journal Classification (ASJC) codes

  • Accounting
  • Finance
  • Economics and Econometrics


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