Equity ownership in international joint ventures: The impact of source country factors

This study examines the impact of four source country factors on the equity ownership in international Joint ventures (IJVs). These factors are exchange rate, cost of borrowing, export capability, and management orientation. Based on a sample of 8,078 IJVs in China, this study shows that equity ownership tends to be higher for parent firms from a source country with strong currency, low cost of borrowing, strong export capability, and high uncertainty avoidance.