Examining the Impact of Alliance Partners’ Reputation on Focal Firms’ Stock Price from Signaling Theory

Abstract

The purpose of this thesis is to examine the impact of Alliance Partners’ Reputation on Focal Firms’ Stock Price Based on the signal theory we develop three hypothesis and also consider the moderating effect of the market action and the R&D innovation ability of the alliance partner This thesis complied a sample of 167 IJVs which were drawn from Securities Data Corporation (SDC) database and were announced between the entire year of 2018 The sampling process was proceeded as below First the IJV companies must be public company Second the IJV companies must come from different countries and one of them must be an American company Third the status of IJV must be completed or signed Last but not least after we obtained other required information from the other database including Yahoo Finance Lexis-Nexis and Compustat only the IJVs which contained completed data will be used as our final samples In the thesis the empirical results show that the higher the alliance partners’ reputation were the better performance the focal firms’ stock price would be Furthermore in terms of the moderating effects the more market actions and the better R&D innovation ability the alliance partners possessed the influence of partners’ reputation on vocal firms’ stock price performance would be strengthened As to the contribution not only do we aim to extend the using of the signal theory from the dimension within the company to the whole strategic alliance partnership we would also like to provide managers some practical insights when it comes to choosing the most suitable alliance partners Key words: alliance partner’s reputation selecting alliance partners stock price performance of the vocal firm signal theory

Date of Award	2020
Original language	English
Supervisor	Chiung-Hui Tseng (Supervisor)