ABSTRACT
This study examines how the 2008 global financial crisis (GFC) influenced the way international strategic alliances (ISAs) impact firm performance. We divide our sample of Korean listed firms into pre-GFC and post-GFC period groups and construct a regression model using return on equity and return on assets as dependent variables. Our empirical results demonstrate that the impacts differ across ISA types and are subject to market conditions. In unstable market circumstances, the demand for ISAs through licensing increases substantially, indicating that licensing has a more positive impact on firm performance than joint ventures or R&D alliances have.
Notes
1. The role of the Korean economy as the leading emerging economy and the characteristics and importance of the Korean financial market are well-documented in previous studies including (Chun, Cho, and Ryu Citation2019; Chung et al. Citation2019; Han, Kutan, and Ryu Citation2015; Kim, Cho, and Ryu Citation2018; Lee and Ryu Citation2019a, Citation2019b; Lee, Ryu, and Kutan Citation2016; Park, Kutan, and Ryu Citation2019; Ryu, Ryu, and Hwang Citation2017; Seo, Kim, and Ryu Citation2019; Seok, Cho, and Ryu Citation2019; Song, Park, and Ryu Citation2018; Song and Ryu Citation2016; Song, Ryu, and Webb Citation2018; Yang et al. Citation2017; Yang, Kutan, and Ryu Citation2018; Yang, Ryu, and Ryu Citation2017).
3. For the sub-period sample analysis, we use six year dummies for each sub-period: the pre-GFC period from 2001 to 2007 and the post-GFC period from 2008 to 2014.
4. An alternative way to examine the effect of the financial crisis would be to use a GFC_dummy variable (set to one for the post-GFC period and zero otherwise) and run a regression on the full data sample. However, doing so would produce a spurious result due to the confounding effect caused by the linear dependence between the GFC_dummy and Year_dummy variables. Therefore, our sub-period sampling is an appropriate way to carry out a comparative analysis on the impact of the financial crisis on ISA performance.
5. For example, the preliminary descriptive statistics prior to winsorization indicate that the minimum and maximum values of ROE are −260.21 and 55.70, respectively. Given that the mean and median values are 3.58 and 9.11 respectively, the spread of the ROE observations is excessively large.
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Funding
This paper was supported by Samsung Research Fund, Sungkyunkwan University, 2018. This work was supported by the Ministry of Education of the Republic of Korea and the National Research Foundation of Korea [NRF-2017S1A5A2A01025583].
https://orcid.org/0000-0003-3625-817X
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