We examine the use of partial equity stakes and volume-based dependence balancing in Japanese automotive supply relationships. Building on Williamson's (1983) hostage model, we argue that the robustness of different types of hostage arrangement depends on the value, durability, and observability...

Most prior event studies find that the announcement of a new alliance is accompanied by a positive stock market response for the partners. This result has usually been interpreted as evidence for the prevailing view that alliances are effective vehicles for partners to acquire or access new...