Dissertation/Thesis Abstract

Anticipating the Duration of Equity Joint Venture Life Cycle Through Initial Transaction Cost
by Chambers, Linda G., D.B.A., Capella University, 2016, 152; 10179204
Abstract (Summary)

Studies of strategic alliance failures avoid separation or distinctions of equity joint ventures (EJV) in examining the perplexity between continued growth and unanticipated terminations. Separating EJV as a unit of analysis, the study determined whether this distinctive form of governance structure was a culprit in the duration problem among strategic alliances. A random sample consisted of 50 EJVs formed among a population of 173 U.S. publicly-traded real estate investment trusts (REITs). Each EJV in the sample was formed between 2004 and 2010 by at least one parent firm that was a U.S. publicly-traded REIT. A quantitative, explanatory study of secondary data comprised the methodology. Multiple regression analysis of the sample estimated the extent that initial transaction cost and firm size of the parent REIT explained duration of an EJV. The data collection source was the Securities Exchange Commission’s Lexus Nexus database of Form 10-k and Form 8-k reported by publicly-traded REITs. A stepwise multiple regression analysis revealed that firm size emerged solely as the significant predictor of duration (F = 10.915, Sig. = .002), accounting for 18.5% of the variance in duration of an EJV. An insignificant positive relationship (r = .17, p ≥ .236) existed between duration and initial contribution amount. Firm size accounted for approximately 20% while roughly 80% of the variance in duration remained unexplained. Contrary to the perplexing short life spans of other strategic alliances, EJVs of REITs experienced a better outcome with an average 5.4 years of duration. The results alert other industries that rely on EJVs of the need to understand the influence of parent firms’ ownership on the duration of EJVs.

Indexing (document details)
Advisor: Smith, Douglas
Commitee: Pandya, Shardul, Woosley, John M.
School: Capella University
Department: School of Business and Technology
School Location: United States -- Minnesota
Source: DAI-A 78/05(E), Dissertation Abstracts International
Subjects: Accounting, Business administration, Finance
Keywords: Equity joint venture life cycle, Equity joint ventures, Joint ventures, Real estate investment trusts, Strategic alliances, Transaction cost theory
Publication Number: 10179204
ISBN: 978-1-369-29284-8
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