Are we in the same boat?: Value-creation in alliance portfolios in the US internet sector
by Kimin Kim
International Journal of Economics and Business Research (IJEBR), Vol. 19, No. 4, 2020

Abstract: Current research admits that value-creation occurs between the focal firm and its partner firms in alliance portfolios. However, most extant studies have focused on performance implications from the perspective of the focal firm. We consider the partner firms' perspective in examining the relationship between portfolio configuration and stock market valuation, along with the moderating role of environmental munificence. Using data on the alliance portfolios of 120 focal firms in the US internet sector covering 1995 to 2003, we found that partner firms that ally with a focal firm with higher portfolio diversity and/or higher portfolio density are likely to enjoy greater abnormal returns when the focal firm announces corporate events. We also found that portfolio density is more likely to be associated with higher abnormal returns when environmental munificence is low than when it is high.

Online publication date: Fri, 29-May-2020

The full text of this article is only available to individual subscribers or to users at subscribing institutions.

 
Existing subscribers:
Go to Inderscience Online Journals to access the Full Text of this article.

Pay per view:
If you are not a subscriber and you just want to read the full contents of this article, buy online access here.

Complimentary Subscribers, Editors or Members of the Editorial Board of the International Journal of Economics and Business Research (IJEBR):
Login with your Inderscience username and password:

Username:        Password:          Forgotten your password?

Want to subscribe?
A subscription gives you complete access to all articles in the current issue, as well as to all articles in the previous three years (where applicable). See our Orders page to subscribe.

If you still need assistance, please email subs@inderscience.com