Ownership Structure, Investment Behavior and Firm Performance in Japanese Manufacturing Industries

Eric Gedajlovic, T. Yoshikawa and M. Hashimoto

ERIM Report Series Research in Management from Erasmus Research Institute of Management (ERIM), ERIM is the joint research institute of the Rotterdam School of Management, Erasmus University and the Erasmus School of Economics (ESE) at Erasmus University Rotterdam

Abstract: Using data spanning the 1996-1998 fiscal years of 247 of Japan's largest manufacturers, we empirically evaluate the extent to which a firm's investment behavior and financial performance is influenced by its ownership structure. To do so, we examine six distinct categories of Japanese shareholders: foreign investors, investment funds, pen sion 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 behavior is highly idiosyncratic. Such a result emphasizes the importance of making finely grained and contextually relevant distinctions when modeling and evaluating corporate governance relations.

Keywords: Japan; corporate governance; investment behaviour; ownership; performance (search for similar items in EconPapers)
JEL-codes: G39 L20 M (search for similar items in EconPapers)
Date: 2001-02-13
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Citations: View citations in EconPapers (1)

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