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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.

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.

Suggested Citation

  • Gedajlovic, E.R. & Yoshikawa, T. & Hashimoto, M., 2001. "Ownership Structure, Investment Behavior and Firm Performance in Japanese Manufacturing Industries," ERIM Report Series Research in Management ERS-2001-09-STR, 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.
    • Handle: RePEc:ems:eureri:73
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    File URL: https://repub.eur.nl/pub/73/erimrs20010213120151.pdf
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    Cited by:

    1. Mauricio Garrón 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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    More about this item

    Keywords

    Japan; corporate governance; investment behaviour; ownership; performance;
    All these keywords.

    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; Personnel Economics

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