An investigation on the shareholder value effects of 233 joint venture announcements of
Dutch public companies was made in the period 1987 till 1998. The research shows that,
on average, establishing joint ventures has a positive effect on the market value of Dutch
companies. The results indicate that joint ventures are preferred when a company is under
pressure. It also shows that the factors of strategic intention, the environment in which
the strategy is unfolded and the extent to which the company has control over the
implementation strongly explains the extent to which a joint venture can create value.