Publication Type
Journal Article
Version
submittedVersion
Publication Date
1-2005
Abstract
Using data spanning the 1996-98 fiscal years of 247 of Japan's largest manufacturers, we empirically evaluate the extent to which a firm's investment behaviour and financial performance are influenced by its ownership structure. To do so, we examine six distinct categories of Japanese shareholders: foreign investors, investment funds, pension 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 behaviour is considerably more complex than is depicted in simple principal-agent representations. Such a result emphasizes the importance of making finely grained and contextually relevant distinctions when modelling and evaluating corporate governance relations.
Keywords
ownership, foreign investors, institutional investors, corporate governance, Japan, dividends, capital expenditures
Discipline
Asian Studies | Business Law, Public Responsibility, and Ethics | Corporate Finance | Strategic Management Policy
Research Areas
Strategy and Organisation
Publication
Organization Studies
Volume
26
Issue
1
First Page
7
Last Page
35
ISSN
0170-8406
Identifier
10.1177/0170840605046346
Publisher
SAGE
Citation
Gedajlovic, Eric; Yoshikawa, Toru; and HASHIMOTO, Motomi.
Ownership structure, investment behaviour and firm performance in Japanese manufacturing industries. (2005). Organization Studies. 26, (1), 7-35.
Available at: https://ink.library.smu.edu.sg/lkcsb_research/2288
Copyright Owner and License
Authors
Creative Commons License
This work is licensed under a Creative Commons Attribution-NonCommercial-No Derivative Works 4.0 International License.
Additional URL
https://doi.org/10.1177/0170840605046346
Included in
Asian Studies Commons, Business Law, Public Responsibility, and Ethics Commons, Corporate Finance Commons, Strategic Management Policy Commons