Capital market and corporate governance: growth strategy of cotton spinning enterprise in the modern Japan
AbstractThis paper examines how the corporate governance of the Japanese cotton spinning enterprise was formed in 20th century beginning. The establishment of the corporate governance which makes long-term growth possible has been thought to be reached by the rise of the professional manager who pursued growth strategy in the modern Japanese business history. However, it was not professional manager's rise, but this paper showed that a capital market played a decisive part so that the cotton spinning enterprises might do growth in the period between 1903 and 1918. Then, the incentive which followed the evaluation of the capital market was being given to a professional manager because of a professional manager's reward system's working with the stock prices together. The professional manager chose strategy corresponding to the evaluation of the capital market. The labor productivity of the enterprises that growth became possible was high relatively, and gained a high profit. The factor of this high labor productivity relatively was a labor equipment ratio.
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Bibliographic InfoPaper provided by Osaka University, Graduate School of Economics and Osaka School of International Public Policy (OSIPP) in its series Discussion Papers in Economics and Business with number 07-40.
Length: 26 pages
Date of creation: Oct 2007
Date of revision:
Cotton industry; Modern Japanese business history; Corporate governance; Direct financing; Growth strategy;
Find related papers by JEL classification:
- D92 - Microeconomics - - Intertemporal Choice - - - Intertemporal Firm Choice, Investment, Capacity, and Financing
- G34 - Financial Economics - - Corporate Finance and Governance - - - Mergers; Acquisitions; Restructuring; Corporate Governance
- N25 - Economic History - - Financial Markets and Institutions - - - Asia including Middle East
This paper has been announced in the following NEP Reports:
- NEP-ALL-2007-11-10 (All new papers)
- NEP-CSE-2007-11-10 (Economics of Strategic Management)
- NEP-HIS-2007-11-10 (Business, Economic & Financial History)
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