Ownership Structure, Investment Behavior and Firm Performance in Japanese Manufacturing Industries
AbstractUsing 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 InfoPaper 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.
Date of creation: 13 Feb 2001
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Japan; corporate governance; investment behaviour; ownership; performance;
Find related papers by JEL classification:
- G39 - Financial Economics - - Corporate Finance and Governance - - - Other
- L20 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - General
- M - Business Administration and Business Economics; Marketing; Accounting
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