Consumption-Leisure Preference Structure: A New Explanation of the Evans-Jovanovic Results for Entrepreneurial Choice

This paper extends Evans and Jovanovic’s (1989) (EJ) model to explicitly consider the latent entrepreneur’s consumption-leisure preference structure, and shows that an increase in his or her assets encourages entrepreneurial activity. This result indicates that EJ’s finding may hold without the assumption of liquidity constraints.     

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.     

Service quality and its effect on customer satisfaction and customer behavioral intentions: hotel and ryokan guests in Japan

This study analyzes the effect of service quality on customer satisfaction and customer behavioral intentions at hotels and ryokan (traditional Japanese inns). In this empirical research, questionnaires were sent to guests at seven sites: three hotels and four ryokan. Service quality, as perceived by guests, affected customer satisfaction and customer behavioral intention. Results from this empirical study show strong evidence of service quality as perceived by guests being influenced by the type of accommodation. Also, among service quality factors, “physical aspect” had the most powerful impact on customer satisfaction and customer behavioral intention. “Creativeness” ranked second, followed by “unexpected service” and “encounter performance”. The prominence of physical aspects probably reflects the distinctiveness of the service of offering a one-night stay. However, as a certain level of physical facilities is taken for granted at lodging facilities above a certain price, “creativeness”, the second most powerful factor, becomes decisively important.     

The effect of collaboration network on inventors' job match,productivity and tenure

It has been argued in the economic literature that job search through informal job networks improves the employer–employee match quality. This paper argues that inventors' research collaboration networks reduce the uncertainty of firms about the match qualities of inventors prior to hiring. We estimate the effect of inventors' collaboration networks on their productivity and mobility using the U.S. patent application database. It is found that networked inventors are more productive and have longer tenure than non-networked inventors. The evidence from fixed-effect regressions shows that the higher productivity and longer tenure of networked inventors are not solely attributable to unobserved ability of inventors or unobserved characteristics of firms. These results are consistent with the job match hypothesis between inventors and firms through their collaboration networks.     

A Phenomenological Approach to Inquiring into an Ethically Bankrupted Organization: A Case Study of a Japanese Company

This study introduced a phenomenological approach to the study of the companies that committed corporate crimes. The author first developed the epistemology of normative control which is based on the philosophical ground of phenomenology, sociology of knowledge, ethnomethodology, Habermas's normative theories, and Foucault's normalizing discourse in the context of organizations. He, then, showed the procedures for conducting a qualitative and phenomenological empirical case study of an aggressive Japanese company whose name appeared in the media for its scandal in Tokyo. The inquiry revealed the generative mechanism of normative control and the patterns of constructing social reality of workplaces in a Japanese company.For the sabbatical period August 1999–August 2000:     

Open-Market Stock Repurchase and Stock Price Behavior When Management Values Real Investment

This paper provides a simple explanation of open‐market stock repurchases and the stock price behavior surrounding them. There is ex ante asymmetry of information with regard to the private benefits that corporate managers can attain from real investments. In our model, open‐market repurchase announcements reveal information about the managers' private benefits when real investment opportunities are unprofitable in terms of firm values. This study differs from previous studies in that we show that announcements of open‐market repurchase programs can be believable without the restriction that the announcements are commitments. Empirically, the model simultaneously predicts that a stock price will drop prior to an open‐market repurchase announcement and will rise in response to the announcement. These predictions are consistent with stylized facts.     

Potential Entrepreneurship in Japan

The aim of this paper is to investigate the potential for entrepreneurship in Japan using the Employment Status Survey, which is the only government-administered survey that includes questions about the desire to become an entrepreneur. We find that there are still a number of potential entrepreneurs in Japan, despite a recent decline in the number of new firms being established. We also find that there is a large regional variation in the distribution of entrepreneurial potential, with clustering into a few regions and the level in Tokyo being exceptional. Further, using panel data on 47 prefectures from 1982 to 1997, we examine the determinants of entrepreneurial potential. The estimation results show that the price-cost margin, market size, market growth and the unemployment rate have positive effects on the potential for entrepreneurship.     

Video game demand in Japan: a household data analysis

Various economic studies of the video game industry have focused on intra-industry details. This article complements the approach by highlighting broader budget allocation by households. Using the ‘total households’ data of the Family Income and Expenditure Survey, this article estimates the demand model for video games. Estimation results show the effects of household income and demographic factors and prices of goods on the expenditure share of video games. These results indicate the importance of explicitly considering a households' budget allocation, or at least, including information on households.     

SME Policy, Financial Structure and Firm Growth: Evidence From Japan

This paper investigates the effects of public policy and financial structure on the growth of small and medium enterprises (SMEs). Using a panel data set on SMEs in the Japanese manufacturing industry, we examine whether or not the SME Creative Business Promotion Law (CBPL) and financial structure affect firm growth. It is found that SMEs approved by prefectural governors under this law tend to increase assets. Further, we provide evidence that the CBPL and cash flow have an impact on the growth of younger SMEs.     

The Perceptual Gaps Between Companies’ and University Students’ Views on Fundamental Competencies

This study examines the gap between the competencies that companies expect of university students and those that university students believe companies are seeking. We find that a gap exists between companies’ and students’ evaluations of the competencies required in the workplace. Surprisingly, companies’ and students’ priorities related to competencies are different. Our results show that both companies and students highly value versatile personal competencies as essential skills for employees. Teamwork skills are not a top priority for companies although students value them highest of the various attributes. Gaps also exist between the two groups regarding their evaluation of personality traits. These findings contribute to the development of appropriate curricula for universities and career education.