Power Balance of Equity and Corporate Performance

Jian Su () and Xiaoming Ji ()
Additional contact information
Jian Su: Northeastern University
Xiaoming Ji: Northeastern University

Chapter Chapter 107 in The 19th International Conference on Industrial Engineering and Engineering Management, 2013, pp 1019-1024 from Springer

Abstract: Abstract Not many theories were about how the power balance affected the corporate governance. The paper investigates whether and how the power’s balance can affect the performance of Japanese listed companies. With sample data of companies listed on Tokyo Stock Exchange, it was interpreted that Return on Assets (ROA) could be regressed on TOP1 (the radio of the largest shareholder), TOP2 (the ratio of the second shareholder) and TOP3 (the ratio of the third shareholder) respectively. The empirical results showed: firstly, TOP1 is negatively related to ROA; secondly, TOP2 is positively related to ROA; finally, TOP3 is negatively related to ROA. These results suggested that reducing the ratio of cross-shareholding, and enhancing the impact of the second largest shareholder are the effective ways to improve corporate earning.

Keywords: Corporate governance; Cross-shareholding; Power balance (search for similar items in EconPapers)
Date: 2013
References: Add references at CitEc
Citations:

There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:spr:sprchp:978-3-642-38427-1_107

Ordering information: This item can be ordered from
http://www.springer.com/9783642384271

DOI: 10.1007/978-3-642-38427-1_107

Access Statistics for this chapter

More chapters in Springer Books from Springer
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().