Risk sharing in the supplier relationship: new evidence from the Japanese automotive industry

Hiroyuki Okamuro

No FS IV 97-18, Discussion Papers, Research Unit: Market Dynamics from WZB Berlin Social Science Center

Abstract: The Japanese corporate system is assumed to contain an implicit insurance mechanism in various aspects. This paper proves the existence of risk sharing mechanism in supplier relations in a different way from the previous studies, using a unique data set of Japanese automotive parts suppliers. The results suggest that the auto makers absorb a part of the business risk of the suppliers, in spite of recent structural changes in the supplier system: The relative stability of their profit rate is significantly influenced by the intensity of business relations.

Date: 1997
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
https://www.econstor.eu/bitstream/10419/51160/1/242961568.pdf (application/pdf)

Related works:
Journal Article: Risk sharing in the supplier relationship: new evidence from the Japanese automotive industry (2001)
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:zbw:wzbmdy:fsiv9718

Access Statistics for this paper

More papers in Discussion Papers, Research Unit: Market Dynamics from WZB Berlin Social Science Center Contact information at EDIRC.
Bibliographic data for series maintained by ZBW - Leibniz Information Centre for Economics ().