IDEAS home Printed from https://ideas.repec.org/p/eti/dpaper/10005.html
   My bibliography  Save this paper

Stock ownership and corporate performance in Japan: Corporate governance by institutional investors

Author

Listed:
  • SHINADA Naoki

Abstract

Faced with an aging population and a low fertility rate, Japan finds it increasingly essential to shift diminishing national savings into productive investment in order to preserve the dynamism of its economy. Stock investment by institutional investors is important for corporate financing, and shareholder involvement in governance influences corporate growth. Using panel data for Japan's listed companies and foreign investors' votes on shareholder proposals, this paper demonstrates: (1) an increase in stock ownership by foreign investors' had a positive effect on productivity growth, but it has not recently improved other corporate performance indices, and (2) foreign investors' strong attitudes towards voting had a positive effect on productivity growth. This paper concludes that external stakeholders' active, qualitative involvement in corporate governance and their quantitative involvement by increasing stock ownership are key to improving corporate growth.

Suggested Citation

  • SHINADA Naoki, 2010. "Stock ownership and corporate performance in Japan: Corporate governance by institutional investors," Discussion papers 10005, Research Institute of Economy, Trade and Industry (RIETI).
    • Handle: RePEc:eti:dpaper:10005
    as

    Download full text from publisher

    File URL: https://www.rieti.go.jp/jp/publications/dp/10e005.pdf
    Download Restriction: no
    ---><---

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eti:dpaper:10005. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: TANIMOTO, Toko (email available below). General contact details of provider: https://edirc.repec.org/data/rietijp.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.