Financial and Product Market Integration: Responses of Japanese Firms

Publication Type

Journal Article

Publication Date

9-2006

Abstract

Growing financial and product market integration has resulted in increased pressures for changes in most developed economies. The researchers investigate the impact of these twin drivers on changes effected by Japanese firms between 1986 and 1999. Specifically, researchers examine how shareholdings by market investors and foreign investors and export ratio impact outcomes in the form of efficiency increases, dividend payout, and leverage change. Researchers also investigate whether the relationships differ between keiretsu and non-keiretsu firms. Ownership by market investors was positively associated with efficiency increases and decreases in firm leverage. In addition, firm export ratio played a key role in motivating Japanese firms to increase their efficiency and firm leverage. Moreover, these relationships were more pronounced in non-keiretsu than keiretsu firms.

Discipline

Business Law, Public Responsibility, and Ethics | Corporate Finance | Entrepreneurial and Small Business Operations

Research Areas

Finance

Publication

Management International Review

Volume

46

Issue

5

First Page

529

Last Page

555

ISSN

0938-8249

Identifier

10.1007/s11575-006-0114-6

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