Transaction Structure in Japanese Small Business Sector

An attempt has been made to examine some aspects of transaction structure of the small business sector in Japanese manufacturing. It has been found that there are some interesting findings in the industrial organization of the sector (1) In the transactions of intermediate goods with manufacturing, small businesses have more frequent transactions with other small businesses than with large firms. On the other hand, large firms have more transactions with each other than with small businesses; (2) The transactions between SMEs and large firms, and between SMEs themselves vary from industry to industry, depending on production/demand structure of an industry and product structure of its SMEs sector; (3) In engineering, such as electrical machinery and transport equipment, the intra-industry transactions from small businesses to large firms are great, suggesting a larger extent of subcontracting relationships. Also, textiles, clothing, and printing and publishing also have higher subcontracting transactions.The relationships are different between the two groups.     

Agent-based simulation approach for disaster rescue using active RFID

After the 2004 earthquake in Japan’sNiigata Prefecture, there were many difficulties finding the victims. The earthquake caused a wired network disconnection. In addition, fixed-phone and cell-phone service systems crashed due to the rapid increase in the volume of communications. The systems’ collapse was due to the large number of users who were worried about the safety of their relatives. The same situation happened during Hurricane Katrina in the USA. Reflecting on these situations, the Japanese Ministry of Internal Affairs and Communications is trying to adopt several methods to correct these communications problems. Although these methods have not been disclosed precisely yet, we think that a predominant goal of one of the methods is most likely to find victims using RFIDs (Radio Frequency Identification) with computer sensors. To do this, the RFID method would have to be incorporated in the following ways: 1) by scattering sensor devices from helicopters when a large-scale disaster such as an earthquake occurs, 2) by making RFIDs self-organized into a network, and 3) by making the self-organized network pinpoint the position of victims. A certain amount of field-testing may be necessary to confirm the effects of this plan. However, such testing requires a great amount of time and high costs. Therefore, we adopt an agent-based simulation for such a test. In this paper, we pay specific attention to a simple and assured algorithm for discovering victims using RFIDs. First, we explain our method to confirm the location of victims. Second, we explain our method for pinpointing the position of victims using trilateration. Finally, we present our simulation results.     

Bankruptcy dynamics in Japan

This paper attempts to enhance our understanding of macro aspects of bankruptcies in Japan. For this purpose, we estimate a vector autoregression comprised of three macroeconomic variables, two financial variables from the corporate sector and the bankruptcy rate, and construct its impulse responses. The estimation results generally show expected and consistent relationships between economic shocks and aggregate bankruptcies: in particular, a positive shock in the call rate clearly raises the bankruptcy rate. We also estimate industry-level models for manufacturing, construction, and wholesale and retail trade, the results of which show fundamental similarities, but differences as well, in the details by industry. We try to apply a standard framework for analysis aimed at establishing a clear benchmark for the study.     

Concentration,subcontract and exports in Japanese Manufacturing Industries

This paper examines the effects of industrial concentration, subcontract and other control variables on export behavior in Japan's manufacturing industry for 1976–80. The primary findings are: (1) concentration has a positive and significant impact on exports; (2) subcontract has a positive and significant effect on exports; (3) research and development activity has no impact on exports.     

商业信用合同的履行概率,其外部性及现金需求——中国案例

本文测算了商业信用合同违约风险对商业贸易和现金需求的影响。结果显示,外国直接投资企业为其贸易伙伴提供了大量商业信用,而中国的企业,无论是私营,还是国有企业,他们交易实行货到即时付款的比例很高。外国直接投资企业之所以是经济交易中信贷的提供者,是因为他们具有较高的商业信用合同执行技术(contract enforcement technology)。我们还发现商业信用合同的执行技术主要包括贸易物品的竞争力、竞争幅度、与地方政府的关系以及公司治理的性质。一个企业具有较高的合同执行概率,就可能提供大量的商业信用,并获得更大的交易量。合同执行技术对贸易交易量的弹性估计约为2.2。模拟显示如果合同执行概率提高,分布在75%,贸易交易量可增加24%,商业信用规模可增加30%。由于商业信用合约的不完备而导致的经济损失则是巨大的。此外,我们证实,高的商业信用合同执行技术通过商业信用量和交易量的增加而在经济中产生正外部效应。     

Performance of Japanese firms in patented inventions; an analysis of patents granted in the U.S.

This paper addresses the relation between firm size and R&D activity for Japanese large manufacturing firms using patents granted in the U.S.. Japanese firms loom larger in world R&D agenda; therefore, the examination of the determinants of their R&D activity, in particular, the effects of firm size, may provide a suggestion of R&D activity. The firm size-patent count relationship varies across industry. In many industries, Japanese experience is not in favor of the assertion that there is a return to scale in R&D among large firms, indicating that Schumpeterian entrepreneurship is not likely to take place more than proportinately to firm size. This conclusion is not inconsistent with Schumpeter's theory.     

The International Integrated Reporting Framework: Key Issues and Future Research Opportunities

This paper has three main aims. First, the paper introduces the concept of integrated reporting (<IR>) as described by the International Integrated Reporting Council (IIRC). A background to the development of the <IR> concept over the 4‐year period from the inception of the IIRC in 2010 is provided, culminating in the release by the IIRC of a Consultation Draft (CD) of the <IR> framework in March 2013. Second, the paper discusses key issues currently being debated relating to the CD that the IIRC will need to resolve prior to the expected release of their <IR> framework in late 2013. This discussion is based on issues identified and reported to the IIRC by a subcommittee of the International Association for Accounting Education and Research (IAAER) comprised of international accounting academics. Finally, the paper identifies a range of potential research issues relating to the development and implementation of <IR>.     

Long‐term Investments and Financial Structure

This paper examines how the financial structure of a firm affects the incentives of managers to act myopically. The paper shows that managers tend to choose investments that pay off too quickly if there is a possibility that shareholders will fire the managers in the future. However, this problem can be avoided if firms are appropriately financed. Since the gains from firing the managers accrue first to the creditors, the shareholders’ incentive to fire the managers is reduced when the firm increases its debt ratio. The firm should thus choose an optimal financial structure to ensure that the level of incentive for shareholders to dismiss managers is appropriately controlled.     

The Turnover of Market Leaders in Growing and Declining Industries: Evidence from Japan

This article explores the turnover of market leaders in the manufacturing and information and communications industries in Japan. We propose indices for market mobility by focusing on the turnover of market leaders and examine how the likelihood of the turnover of market leaders differs across industries. We provide evidence that market leaders are more likely to be replaced by competitors in growing and declining industries, relative to industries where the growth is more stable. Moreover, the results reveal that the turnover of market leaders is more likely to occur in research and development-intensive industries. Furthermore, the interaction effects of industry growth and concentration indicate that the turnover of market leaders is more likely to occur in declining industries with high concentration.     

Market Leadership Volatility in Japanese Industries

The paper computes the extent of marketleadership volatility by industry, and then examinesthe determinants of volatility in Japanesemanufacturing industries. Volatility varies fromindustry to industry, and changes over time in manyindustries. Concentration coexists with lessvolatility, suggesting that the former has a policysignificance. Concentration change has a significantand positive effect. Exports have avolatility-promoting effect, but imports have noeffect. Industry size tends to decrease volatility.The effect of industry growth is not found.Advertising, R&D and distribution channel have nodefinite effect respectively as well.