Optimality of the 51:49 equity structure

Susheng Wang; Tian Zhu

doi:10.1016/j.econlet.2016.07.003

Optimality of the 51:49 equity structure

Susheng Wang (First Author), Tian Zhu (Participant Author)

经济学

Hong Kong Univ Sci & Technol

科研成果: 期刊稿件 › 期刊论文

摘要

As an extension of Wang and Zhu (2005), this short paper shows that the popular 51:49 equity structure can be optimal. This equity structure in joint ventures (JVs) has puzzled economists the world over. We find that, when the two parties are highly asymmetric in their abilities to acquire private benefits from their JV, the 51:49 equity structure is optimal and as efficient as joint control.

源语言	英语
页（从-至）	270-273
期刊	Economics Letters
卷	145
DOI	https://doi.org/10.1016/j.econlet.2016.07.003
州	已出版 - 2016

Corresponding author email

s.wang@ust.hk

关键词

51:49 equity structure
Control rights
Income rights
Joint control

成果物的来源

ABDC-A
Scopus
SSCI

访问文件

10.1016/j.econlet.2016.07.003许可: CC BY-NC-ND

OpenUrl 可用性

全文

其它文件与链接

View record in Web of Science

引用此

@article{50c47435b0f147f1b3fc6ccb00265672,

title = "Optimality of the 51:49 equity structure",

abstract = "As an extension of Wang and Zhu (2005), this short paper shows that the popular 51:49 equity structure can be optimal. This equity structure in joint ventures (JVs) has puzzled economists the world over. We find that, when the two parties are highly asymmetric in their abilities to acquire private benefits from their JV, the 51:49 equity structure is optimal and as efficient as joint control.",

keywords = "51:49 equity structure, Control rights, Income rights, Joint control, 51:49 equity structure, Control rights, Income rights, Joint control",

author = "Susheng Wang and Tian Zhu",

year = "2016",

doi = "10.1016/j.econlet.2016.07.003",

language = "English",

volume = "145",

pages = "270--273",

journal = "Economics Letters",

issn = "0165-1765",

publisher = "Elsevier",

}

TY - JOUR

T1 - Optimality of the 51:49 equity structure

AU - Wang, Susheng

AU - Zhu, Tian

PY - 2016

Y1 - 2016

N2 - As an extension of Wang and Zhu (2005), this short paper shows that the popular 51:49 equity structure can be optimal. This equity structure in joint ventures (JVs) has puzzled economists the world over. We find that, when the two parties are highly asymmetric in their abilities to acquire private benefits from their JV, the 51:49 equity structure is optimal and as efficient as joint control.

AB - As an extension of Wang and Zhu (2005), this short paper shows that the popular 51:49 equity structure can be optimal. This equity structure in joint ventures (JVs) has puzzled economists the world over. We find that, when the two parties are highly asymmetric in their abilities to acquire private benefits from their JV, the 51:49 equity structure is optimal and as efficient as joint control.

KW - 51:49 equity structure

KW - Control rights

KW - Income rights

KW - Joint control

KW - 51:49 equity structure

KW - Control rights

KW - Income rights

KW - Joint control

UR - https://www.webofscience.com/api/gateway?GWVersion=2&SrcApp=ceibs_wosapi&SrcAuth=WosAPI&KeyUT=WOS:000381834600063&DestLinkType=FullRecord&DestApp=WOS

U2 - 10.1016/j.econlet.2016.07.003

DO - 10.1016/j.econlet.2016.07.003

M3 - Journal

SN - 0165-1765

VL - 145

SP - 270

EP - 273

JO - Economics Letters

JF - Economics Letters

ER -

Optimality of the 51:49 equity structure

摘要

Corresponding author email

关键词

成果物的来源

访问文件

OpenUrl 可用性

其它文件与链接

指纹

引用此