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

Copyright Owner and License

Authors

External URL

https://ssrn.com/abstract=370867

Additional URL

https://doi.org/10.1177/0170840605046346

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