Equity Struture of International Joint Ventures

Ownership is an important topic in the field of international joint ventures (IJVs), which are a rapidly growing form of international strategy. This article presents the absolute and comparative perspectives of the conventional concept of ownership-equity. Four patterns of IJV's equity share and structure are proposed respectively in the absolute and comparative view. An empirical study was conducted to analyze these patterns of IJVs formed in Taiwan. Most foreign firms as well as Taiwan ese firms prefer to be the majority of IJVs with 50%~67% ownership. The most popular equity structure of IJVs is "shared" and "concentrated".