This file is part of IDEAS, which uses RePEc data


[ Papers | Articles | Software | Books | Chapters | Authors | Institutions | JEL Classification | NEP reports | Search | New papers by email | Author registration | Rankings | Volunteers | FAQ | Blog | Help! ]

Japanese Horizontal Keiretsu and the Performance Implications of Membership

Author info | Abstract | Publisher info | Download info | Related research | Statistics
Author Info
Takehiko Isobe (Research Institute for Economics and Business Administration, Kobe University)
Shige Makino (Department of Management, The Chinese University of Hong Kong)
Anthony Goerzen (University of Victoria)
Abstract

Our study investigates the effect of Japanese horizontal keiretsu group membership on firm risk and return. Like prior studies, our results show that horizontal keiretsu membership has a negative effect on firm profitability. However, we find that horizontal keiretsu networks are likely to increase the gap between targeted and realized returns, which we call the outcome-aspiration gap. Moreover, in contrast to prior studies, our results indicate that keiretsu membership does not enable member firms to reduce risks by smoothing profitability. Instead, our findings provide evidence that is counter to the conventional notion that Japanese horizontal keiretsu allow their member firms to trade off profits for reduced risk.

Download Info
To download:

If you experience problems downloading a file, check if you have the proper application to view it first. Information about this may be contained in the File-Format links below. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.

File URL: http://www.rieb.kobe-u.ac.jp/academic/ra/dp/English/dp190.pdf
File Format: application/pdf
File Function: First version, 2006
Download Restriction: no

Publisher Info
Paper provided by Research Institute for Economics & Business Administration, Kobe University in its series Discussion Paper Series with number 190.

Download reference. The following formats are available: HTML (with abstract), plain text (with abstract), BibTeX, RIS (EndNote, RefMan, ProCite), ReDIF
Length: 24 pages
Date of creation: Jun 2006
Date of revision:
Handle: RePEc:kob:dpaper:190

Contact details of provider:
Postal: Nada-ku Rokkodai 2-1, Kobe 657-8501
Fax: 81-78-803-0386
Web page: http://www.rieb.kobe-u.ac.jp/
More information through EDIRC

For technical questions regarding this item, or to correct its listing, contact: (Research Assistant Room).

Related research
Keywords: horizontal keiretsu; performance; risk sharing;

References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:

  1. Granovetter, Mark, 1995. "Coase Revisited: Business Groups in the Modern Economy," Industrial and Corporate Change, Oxford University Press, vol. 4(1), pages 93-130.
  2. Michael Carney, 2005. "Globalization and the Renewal of Asian Business Networks," Asia Pacific Journal of Management, Springer, vol. 22(4), pages 337-354, December. [Downloadable!] (restricted)
  3. Flath, David, 1996. "The Keiretsu Puzzle," Journal of the Japanese and International Economies, Elsevier, vol. 10(2), pages 101-121, June. [Downloadable!] (restricted)
  4. Aoki, Masahiko, 1990. "Toward an Economic Model of the Japanese Firm," Journal of Economic Literature, American Economic Association, vol. 28(1), pages 1-27, March. [Downloadable!] (restricted)
  5. Hicheon Kim & Robert E. Hoskisson & Laszlo Tihanyi & Jaebum Hong, 2004. "The Evolution and Restructuring of Diversified Business Groups in Emerging Markets: The Lessons from Chaebols in Korea," Asia Pacific Journal of Management, Springer, vol. 21(1_2), pages 25-48, 03. [Downloadable!]
  6. Yoshiro Miwa & J. Mark Ramseyer, 2002. "The Fable of the Keiretsu," Journal of Economics & Management Strategy, Blackwell Publishing, vol. 11(2), pages 169-224, 06. [Downloadable!] (restricted)
    Other versions:
  7. Hoshi, Takeo & Kashyap, Anil & Scharfstein, David, 1990. "The role of banks in reducing the costs of financial distress in Japan," Journal of Financial Economics, Elsevier, vol. 27(1), pages 67-88, September. [Downloadable!] (restricted)
    Other versions:
  8. Hoshi, Takeo & Kashyap, Anil & Scharfstein, David, 1991. "Corporate Structure, Liquidity, and Investment: Evidence from Japanese Industrial Groups," The Quarterly Journal of Economics, MIT Press, vol. 106(1), pages 33-60, February. [Downloadable!] (restricted)
    Other versions:
  9. Tarun Khanna & Yishay Yafeh, 2005. "Business Groups and Risk Sharing around the World," Journal of Business, University of Chicago Press, vol. 78(1), pages 301-340, January. [Downloadable!]
  10. Sheard, Paul, 1989. "The main bank system and corporate monitoring and control in Japan," Journal of Economic Behavior & Organization, Elsevier, vol. 11(3), pages 399-422, May. [Downloadable!] (restricted)
Full references

Cited by:
(explanations, Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.)

  1. Toru Yoshikawa & Jean McGuire, 2008. "Change and continuity in Japanese corporate governance," Asia Pacific Journal of Management, Springer, vol. 25(1), pages 5-24, January. [Downloadable!] (restricted)
  2. Pawan Budhwar & Yaw Debrah, 2009. "Future research on human resource management systems in Asia," Asia Pacific Journal of Management, Springer, vol. 26(2), pages 197-218, June. [Downloadable!] (restricted)
  3. Jean McGuire & Sandra Dow, 2009. "Japanese keiretsu: Past, present, future," Asia Pacific Journal of Management, Springer, vol. 26(2), pages 333-351, June. [Downloadable!] (restricted)
  4. Sea-Jin Chang, 2006. "Business groups in East Asia: Post-crisis restructuring and new growth," Asia Pacific Journal of Management, Springer, vol. 23(4), pages 407-417, December. [Downloadable!] (restricted)
  5. Mike Peng & Andrew Delios, 2006. "What determines the scope of the firm over time and around the world? An Asia Pacific perspective," Asia Pacific Journal of Management, Springer, vol. 23(4), pages 385-405, December. [Downloadable!] (restricted)
  6. Asli Colpan, 2008. "Are strategy-performance relationships contingent on macroeconomic environments? Evidence from Japan’s textile industry," Asia Pacific Journal of Management, Springer, vol. 25(4), pages 635-665, December. [Downloadable!] (restricted)
Statistics
Access and download statistics

Did you know? It is the publishers that input data about their publications, as there is no staff at RePEc.

This page was last updated on 2009-11-22.

This information is provided to you by IDEAS at the Department of Economics, College of Liberal Arts and Sciences, University of Connecticut using RePEc data on a server sponsored by the Society for Economic Dynamics.