Joint venture formation of very large multinational firms

Large firms differ from smaller firms in many aspects. In this research not e, we investigate the relationship between the size of firm and the charact eristics of equity joint ventures (EJVs). Empirically, we found that very l arge firms are more likely to have a higher equity stake in their EJVs, see k alignment with other foreign firms, engage in global industries, and inve st in large-scale EJV's than smaller firms. They are also less affected by the risk conditions of the host country. Empirical testing is based on a sa mple of 1,298 foreign EJVs in the People's Republic of China between 1981 a nd 1998. Interesting differences exist among firms that are U.S., Japan, an d Europe.