IDEAS home Printed from https://ideas.repec.org/p/eti/rdpsjp/19030.html
   My bibliography  Save this paper

Effects of Outside Directors on Firms' Investment Behavior and Performance: Evidence from a Quasi-Natural Experiment in Japan (Japanese)

Author

Listed:
  • MORIKAWA Masayuki

Abstract

This study, focusing on the recent quasi-exogenous increase in the number of outside (independent) directors among listed firms, presents empirical evidence on the impact of outside (independent) directors on investments and firm performance. Using a panel of Japanese firms, we make comparisons between listed and unlisted firms and instrumental variable estimations to examine causal relationships. According to the findings, rapid increase in the number of outside directors among listed firms does not promote positive investments and risk-taking behavior. In addition, it does not have significant impact on profitability or productivity of the firms. However, since the time horizon of the analysis is limited to up to two years after the change in the board structure, long-term impacts are beyond the scope of this study.

Suggested Citation

  • MORIKAWA Masayuki, 2019. "Effects of Outside Directors on Firms' Investment Behavior and Performance: Evidence from a Quasi-Natural Experiment in Japan (Japanese)," Discussion Papers (Japanese) 19030, Research Institute of Economy, Trade and Industry (RIETI).
    • Handle: RePEc:eti:rdpsjp:19030
    as

    Download full text from publisher

    File URL: https://www.rieti.go.jp/jp/publications/dp/19j030.pdf
    Download Restriction: no
    ---><---

    More about this item

    NEP fields

    This paper has been announced in the following NEP Reports:

    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:rdpsjp:19030. 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.