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.
ownership, foreign investors, institutional investors, corporate governance, Japan, dividends, capital expenditures
Asian Studies | Business Law, Public Responsibility, and Ethics | Corporate Finance | Strategic Management Policy
Strategy and Organisation
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. Research Collection Lee Kong Chian School Of Business.
Available at: http://ink.library.smu.edu.sg/lkcsb_research/2288
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