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Ownership Structure, Investment Behavior and Firm Performance in Japanese Manufacturing Industries

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  • Gedajlovic, E.R.
  • Yoshikawa, T.
  • Hashimoto, M.
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    Abstract

    Using data spanning the 1996-1998 fiscal years of 247 of Japan's largest manufacturers, we empirically evaluate the extent to which a firm's investment behavior and financial performance is influenced by its ownership structure. To do so, we examine six distinct categories of Japanese shareholders: foreign investors, investment funds, pen sion funds, banks and insurance companies, affiliated companies and insiders. Our findings strongly indicate that the relationship between the equity stakes of a particular category of investor and a firm's financial performance and investment behavior is highly idiosyncratic. Such a result emphasizes the importance of making finely grained and contextually relevant distinctions when modeling and evaluating corporate governance relations.

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    Bibliographic Info

    Paper provided by Erasmus Research Institute of Management (ERIM), ERIM is the joint research institute of the Rotterdam School of Management, Erasmus University and the Erasmus School of Economics (ESE) at Erasmus University Rotterdam in its series ERIM Report Series Research in Management with number ERS-2001-09-STR.

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    Date of creation: 13 Feb 2001
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    Handle: RePEc:ems:eureri:73

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    Related research

    Keywords: Japan; corporate governance; investment behaviour; ownership; performance;

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    Cited by:
    1. Mauricio GarrĂ³n B. & Carlos Gustavo Machicado & Katherina Capra, 2003. "Privatization in Bolivia: The Impact on Firm Performance," Research Department Publications 3154, Inter-American Development Bank, Research Department.

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