Publication Type

Journal Article

Version

acceptedVersion

Publication Date

4-2005

Abstract

The authors studied the effect of ownership structure on human capital investments as indicated by wage intensity, defined as the ratio of expenditure on employee wages to sales, in a sample of 996 Japanese manufacturing firms during their economic recession of 1998-2002. They found that domestic shareholders, with interests beyond financial considerations, enhance wage intensity, especially when performance is low, and thereby safeguard human capital investments. Foreign shareholders with sole interest in financial returns have an opposite effect; they reduce wage intensity when firm performance is low.

Keywords

corporate governance, Japan, human capital theory, ownership structure, theory of the firm

Discipline

Asian Studies | Business Law, Public Responsibility, and Ethics | Organizational Behavior and Theory | Strategic Management Policy

Research Areas

Strategy and Organisation

Publication

Journal of Management

Volume

31

Issue

2

First Page

278

Last Page

300

ISSN

0149-2063

Identifier

10.1177/0149206304271766

Publisher

SAGE

Copyright Owner and License

Authors

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