A description of Project Alliances: Cofinancing of movie projects.

1. Project Alliances Movie Industry: Choosing a Co-finance

2. Stages of Movie Project Screen writing & development Assembly of a creative team Pre-production Production Post-production Distribution

3. Financing

4. Motives behind Alliances Risk reduction hypothesis Internal Capital market hypothesis Managerial bargaining power hypothesis Market structure hypothesis Resource pooling hypothesis Specialization hypothesis Lemon hypothesis

5. Research Basis A sample of 275 films produced by 12 major studios Assembled two datasets at the movie level One consists of co-financed films and the other solely financed films

6. Variables taken in account

7. Comparison Movie Industry Alliances Alliances form after R&D Time consuming Inexpensive Bio-Tech Industry Alliances Alliances are formed before R&D Less time consuming Expensive

8. Findings Solely Financed: Less Risky Strategic Alliance: More Risky Performance doesn’t significantly differ in both cases

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