The Relative Performance of Joint Ventures and Wholly-Owned Subsidiaries and the Reasons why they exit: The Case of Dutch Foreign Subsidiaries

ISBN-13: 9783640695140 / Angielski / Miękka / 2010 / 66 str.

Matthias Otto

Opis

Master's Thesis from the year 2009 in the subject Business economics - Business Management, Corporate Governance, grade: 2,0, University of Amsterdam, language: English, abstract: Using data on more than 200 foreign entries made by Dutch MNEs between 1995 and 2003, this study examines the relative performance of jointly-owned and wholly-owned affiliates and sheds light on the underlying reasons why these two types of affiliates exit. By employing performance measures such as average longevity and exit rate, and by differentiating between exits through liquidations and those through sell-offs, I find that there are no essential performance differences between WOSs and JVs, which is in line with the results of prior scholarship (e.g. Dang, 1977; Chowdhury, 1992; Chan, 1995; Mata & Portugal, 2000; Pangarkar & Lim; 2003; Delios & Beamish, 2004). Furthermore, the findings reveal that both WOSs and JVs mainly exit voluntarily. The most prevalent reason for WOS exit is strategic restructuring, whereas the most common reason for JV exit is fierce competition in the host market. Finally, I discover supporting evidence for the proposition that MNE parents are more likely to buy out local partners from JVs over which they have majority ownership than from JVs over which they have minority ownership.

O autorze

Matthias Otto is Professor of Analytical Chemistry at the TU Bergakademie Freiberg in Germany. He was born in Dresden (Germany) and did all his studies at the University of Leipzig including his doctoral thesis and habilitation under the supervision of Helmut Müller and Gerhard Werner. He worked as a post-doctoral fellow at Graz University of Technology (Austria) with W. Wegscheider and at UWIST, Cardiff (UK), with J. D. R. Thomas. In 1984 he moved to Freiberg (Germany) as a reader and was appointed full Professor there in 1987. Since that time he has taught almost all aspects of Analytical Chemistry mainly within the curricula of chemistry, applied sciences and geoecology and organizes courses in basic and advanced chemometrics.