A transactional analysis of Chinese partners' performance in international joint ventures

This article proposes a transactional analysis of the performance of international joint ventures formed in mainland China and Taiwan. This analysis is carried out for a sample of 104 Chinese partners who, between January 2000 and December 2003, announced the formation of an international joint venture. An event study methodology is used to measure Chinese partners' stock market reactions to the formation of these joint ventures. The different empirical results found concur to envisage an analysis of Chinese partners' performance that is distinct from that of foreign partners. These results raise doubts concerning the appropriateness of transaction cost theory as a framework for analyzing Chinese partners' performance.