Streaming Subsidiary and Joint Venture Count in Relation to Age of Company, Industry and Ownership Type

Abstract

Companies form subsidiaries and joint ventures with varied motives like market entry or expansion, expertise sharing, diversification or risk spread. Literature reflects the existence of these motivation in various countries and these motivations answer to question ‘why’ subsidiaries and joint ventures. But the present study attempts to investigate to ‘which type of companies’ do form more subsidiaries and joint ventures. In other words, it attempts to relate age, type of ownership and industry with subsidiary and joint venture count of companies by taking the sample of 200 companies from Fortune India 500 List. The results depict that the industry type doesn’t affect either of the two counts whereas age affects joint venture count and old aged companies have more joint ventures as compared to young ones. As far as ownership is concerned, it is more related to subsidiary count in the sense that companies with private ownership and companies affiliated to groups form more subsidiaries as compared to government owned companies, companies with diversified ownership and MNCs.

Keywords: Subsidiary Count, Joint Venture Count, Ownership, Industry Type, Age

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