IDEAS home Printed from
   My bibliography  Save this paper

Does governance matter? Performance and corporate governance structures of Japanese keiretsu groups


  • Moerke, Andreas


The paper presents an investigation of 72 Japanese manufacturing firms from five different industries with the focus on horizontal industrial groups (keiretsu). Data source was the Kaisha Database at the Science Center Berlin. The main findings are: Using the hexagon criterion to estimate the excellence of firms, the independent firms achieved better results. Thus we conclude that belonging to a keiretsu is no longer a guarantee for the success of a company. A different bank-firm relationship leads to different income distribution: the „old” keiretsu pay higher wages while the independent firms pay more dividend per share. Our best speculation is that the “old” keiretsu are still somewhat isolated from the market and the independent firms have to be more attractive to their shareholders. The structure of the boards of directors differs in following points: keiretsu firms have clearly larger boards than independent firms. Independent firms have on the average less directors dispatched from financial institutions, but do have a higher number of outsiders. They appoint more amakudari bureaucrats from the Bank of Japan and the Ministry of Finance to outbalance the better bank-firm relations of the keiretsu. The keiretsu, however, appoint more bureaucrats from state institutions related directly to their business.

Suggested Citation

  • Moerke, Andreas, 1997. "Does governance matter? Performance and corporate governance structures of Japanese keiretsu groups," Discussion Papers, Research Unit: Market Dynamics FS IV 97-43, Social Science Research Center Berlin (WZB).
  • Handle: RePEc:zbw:wzbmdy:fsiv9743

    Download full text from publisher

    File URL:
    Download Restriction: no

    References listed on IDEAS

    1. Moerke, Andreas, 1997. "Japanische Unternehmensgruppen: Eine empirische Analyse," Discussion Papers, Research Unit: Market Dynamics FS IV 97-42, Social Science Research Center Berlin (WZB).
    2. Takeo Hoshi & Anil Kashyap & David Scharfstein, 1991. "Corporate Structure, Liquidity, and Investment: Evidence from Japanese Industrial Groups," The Quarterly Journal of Economics, Oxford University Press, vol. 106(1), pages 33-60.
    Full references (including those not matched with items on IDEAS)


    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.

    Cited by:

    1. Albach, Horst & Görtzen, Ulrike & Miarka, Tobias & Moerke, Andreas & Westphal, Thomas & Zobel, Rita, 1997. "Dokumentation der Kaisha-Datenbank - Zur Datenbank der Jahresabschlüsse japanischer Industrieaktiengesellschaften 1970-1997," Discussion Papers, Research Unit: Market Dynamics FS IV 97-39, Social Science Research Center Berlin (WZB).

    More about this item


    Access and download statistics


    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:zbw:wzbmdy:fsiv9743. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (ZBW - German National Library of Economics). General contact details of provider: .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.