Ownership Structure, Investment Behavior and Firm Performance in Japanese Manufacturing Industries
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|
|Publisher||Erasmus Research Institute of Management (ERIM)|
Gedajlovic, E.R., Yoshikawa, T., & Hashimoto, M.. (2001). Ownership Structure, Investment Behavior and Firm Performance in Japanese Manufacturing Industries (No. ERS-2001-09-STR). Erasmus Research Institute of Management (ERIM). Retrieved from http://hdl.handle.net/1765/73