Foreign buyout of international equity joint ventures in China: When does performance improve?

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dc.contributor.authorDuanmu, Jing-Lin
dc.contributor.authorLawton, Thomas C.
dc.date.accessioned2021-06-23T09:56:30Z
dc.date.available2021-06-23T09:56:30Z
dc.date.issued2021-06-13
dc.date.updated2021-06-02T10:22:32Z
dc.description.abstractSince the early 2000s, Sino-foreign equity joint ventures (JVs) have declined sharply as a predominant strategy for multinational enterprises (MNEs) to enter and operate in China. We study one of the contributory factors, foreign buyout, and its performance implications. By applying incomplete contract theory and an agency perspective, we provide micro evidence that superior post buyout performance is observed in converted wholly-owned subsidiaries (WOSs) with efficiency-seeking operations and subsequent CEO succession. The findings extend our understanding that ownership per se does not guarantee performance improvement. Instead, it is the alignment between ownership and the ownerâ s inputs, and between ownership and the ownerâ s managerial control, that give rise to performance improvement.en
dc.description.statusPeer revieweden
dc.description.versionAccepted Versionen
dc.format.mimetypeapplication/pdfen
dc.identifier.articleid101243en
dc.identifier.citationDuanmu, J.-L. and Lawton, T. C. (2021) 'Foreign buyout of international equity joint ventures in China: When does performance improve?', Journal of World Business, 56(5), 101243 (13pp). doi: 10.1016/j.jwb.2021.101243en
dc.identifier.doi10.1016/j.jwb.2021.101243en
dc.identifier.endpage13en
dc.identifier.issn1090-9516
dc.identifier.issued5en
dc.identifier.journaltitleJournal of World Businessen
dc.identifier.startpage1en
dc.identifier.urihttps://hdl.handle.net/10468/11482
dc.identifier.volume56en
dc.language.isoenen
dc.publisherElsevier B.V.en
dc.rights© 2021, Elsevier Inc. All rights reserved. This manuscript version is made available under the CC BY-NC-ND 4.0 license.en
dc.subjectInternational equity joint ventureen
dc.subjectForeign buyouten
dc.subjectFirm performanceen
dc.subjectCEO successionen
dc.subjectAgency theoryen
dc.subjectIncomplete contract theoryen
dc.subjectEfficiency-seeking FDIen
dc.subjectChinaen
dc.titleForeign buyout of international equity joint ventures in China: When does performance improve?en
dc.typeArticle (peer-reviewed)en
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