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Financial and product market integration: Responses of Japanese firms

Author

Listed:
  • Toru Yoshikawa

    (McMaster University)

  • Abdul A. Rasheed

    (University of Texas at Arlington)

  • Deepak K. Datta

    (University of Texas at Arlington)

  • Joseph Rosenstein

    (University of Texas at Arlington)

Abstract

Abstract and Key Results ▪ Growing financial and product market integration has resulted in increased pressures for changes in most developed economies. We investigate the impact of these twin drivers on changes effected by Japanese firms between 1986 and 1999. ▪ Specifically, we examine (1) how shareholdings by market investors and foreign investors and (2) export ratio impact outcomes in the form of efficiency increases, dividend payout, and leverage change. ▪ We also investigate whether the relationships differ between keiretsu and nonkeiretsu firms. ▪ Ownership by market investors was positively associated with efficiency increases and decreases in firm leverage. In addition, firm export ratio played a key role in motivating Japanese firms to increase their efficiency and firm leverage. Moreover, these relationships were more pronounced in non-keiretsu than keiretsu firms.

Suggested Citation

  • Toru Yoshikawa & Abdul A. Rasheed & Deepak K. Datta & Joseph Rosenstein, 2006. "Financial and product market integration: Responses of Japanese firms," Management International Review, Springer, vol. 46(5), pages 529-555, September.
    • Handle: RePEc:spr:manint:v:46:y:2006:i:5:d:10.1007_s11575-006-0114-6
    DOI: 10.1007/s11575-006-0114-6
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    Cited by:

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    2. Toru Yoshikawa & Abdul A. Rasheed, 2010. "Family Control and Ownership Monitoring in Family‐Controlled Firms in Japan," Journal of Management Studies, Wiley Blackwell, vol. 47(2), pages 274-295, March.
    3. Tamir Agmon & Avi Messica, 2009. "Financial Foreign Direct Investment: The Role of Private Equity Investments in the Globalization of Firms from Emerging Markets," Management International Review, Springer, vol. 49(1), pages 11-26, February.
    4. Todd W. Moss & Donald O. Neubaum & Moriah Meyskens, 2015. "The Effect of Virtuous and Entrepreneurial Orientations on Microfinance Lending and Repayment: A Signaling Theory Perspective," Entrepreneurship Theory and Practice, , vol. 39(1), pages 27-52, January.
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    6. Jeoung Yul Lee & Asli M. Colpan & Yeon-Sik Ryu & Tomoki Sekiguchi, 2022. "What do we know about the internationalization of Asian business groups? A systematic review and future research agenda," Asian Business & Management, Palgrave Macmillan, vol. 21(5), pages 802-830, November.
    7. R. Greg Bell & Curt B. Moore & Hussam A. Al–Shammari, 2008. "Country of Origin and Foreign IPO Legitimacy: Understanding the Role of Geographic Scope and Insider Ownership," Entrepreneurship Theory and Practice, , vol. 32(1), pages 185-202, January.

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