“Corporate restructuring issues under the holding company structure – The NTT Case in Japan”
AbstractABSTRACT This research paper focused on the corporate restructuring of Nippon Telegraph Telecommunication (NTT Group) under the pure holding company structure in 1999 and its implications. In order to understand the holding company structure, we introduced the concept of "internal capital markets" and explained its application within the framework of NTT Group. Next, we gave an account of the background events leading to NTT Group's corporate restructuring in order to understand the reason for choosing and keeping the holding company structure. Our research methodologies include interviews with NTT Group's management and data from public sources. Finally, to analyze the effect of the holding company structure to NTT Group, we conducted a hypothetical valuation analysis using the free cash flow model. Comparing the market value of NTT Group with our valuation results, it appeared that the market has undervalued NTT Group. We concluded our report with some suggestions on how NTT Group might be able to increase their market value.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. 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.
Bibliographic InfoPaper provided by University Library of Munich, Germany in its series MPRA Paper with number 27349.
Date of creation: 01 Dec 2010
Date of revision: 09 Dec 2010
HOLDING COMPANY STRUCTURE; RESTRUCTURING; INTERNAL CAPITAL MARKET; VALUATION;
Find related papers by JEL classification:
- L20 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - General
- L22 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Organization and Market Structure
- M10 - Business Administration and Business Economics; Marketing; Accounting - - Business Administration - - - General
- C80 - Mathematical and Quantitative Methods - - Data Collection and Data Estimation Methodology; Computer Programs - - - General
This paper has been announced in the following NEP Reports:
- NEP-ALL-2010-12-18 (All new papers)
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.:
- Jeremy C. Stein, 1995.
"Internal Capital Markets and the Competition for Corporate Resources,"
NBER Working Papers
5101, National Bureau of Economic Research, Inc.
- Stein, Jeremy C, 1997. " Internal Capital Markets and the Competition for Corporate Resources," Journal of Finance, American Finance Association, vol. 52(1), pages 111-33, March.
- Mari Sako & Gregory Jackson, 2003. "Enterprise Boundaries and Employee Representation: Deutsche Telekom and NTT Compared," Discussion papers 03025, Research Institute of Economy, Trade and Industry (RIETI).
- Mihir A. Desai & C. Fritz Foley & James R. Hines, Jr., 2003.
"A Multinational Perspective on Capital Structure Choice and Internal Capital Markets,"
NBER Working Papers
9715, National Bureau of Economic Research, Inc.
- Mihir A. Desai & C. Fritz Foley & James R. Hines, 2004. "A Multinational Perspective on Capital Structure Choice and Internal Capital Markets," Journal of Finance, American Finance Association, vol. 59(6), pages 2451-2487, December.
- Gertner, Robert H & Scharfstein, David S & Stein, Jeremy C, 1994.
"Internal versus External Capital Markets,"
The Quarterly Journal of Economics,
MIT Press, vol. 109(4), pages 1211-30, November.
- Akiyoshi Horiuchi & Veronica Taylor & Leon Wolff, 2000. "Implications of Recent Japanese Legal Reforms," Asia Pacific Economic Papers 302, Australia-Japan Research Centre, Crawford School of Public Policy, The Australian National University.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Ekkehart Schlicht).
If references are entirely missing, you can add them using this form.