Mixed ownership of industrial firms in Japan: debt financing,banks and vertical keiretsu groups

In the 1980s, Japanese bank-driven corporate governance practices were often said to be part of the explanation for Japan’s economic success. However, these practices became suspected causes of Japan’s continuing recession following the burst of the financial bubble in 1990. Since then Japanese banks have suffered from increasing numbers of non-performing loans. Consequently, banks have become less able to act as the benefactors for Japanese firms. In response to the reduced supply of bank loans, Japanese firms have been exploring issuing corporate bonds and other types of public debt as alternative methods of debt financing. The objective of this paper is to examine empirically how Japanese manufacturers have responded to the deteriorating financial conditions of Japanese banks from a corporate finance perspective. In particular, we are interested in knowing whether Japanese banks’ involvement in corporate governance has declined with the increase in public debt issuances. Our empirical results seem to suggest that Japanese banks play a significant role in their client firms’ issuances of public debt and hence continue to play a significant role in corporate governance.     

Talk,trust and information flow: work relationships between Japanese expatriate and host national employees in Indonesia

This paper broadens the understanding of work relationships between expatriate and host national employees in transnational organisations/corporations, who have tended to be investigated separately. By exploring interpersonal interactions between expatriate and host national employees, this paper highlights the importance of their relationships in the implementation of organisational activities. With a focus on both Japanese expatriate and host national employees in a Japanese organisation in Indonesia, this ethnographic study examines the ways in which they worked in unfamiliar circumstances, managed differences and provided essential support for each other. Their transnational connections, characterised by what Granovetter calls ‘the strength of weak ties’, function to diffuse information and knowledge effectively. I argue the significance of ‘talk’, particularly small talk, as an initial action that supports such information flow and builds trust. This paper attempts to demonstrate the vital roles of expatriate and host national employees as mediators, by using network analysis as a framework. Finally, I conclude that both expatriate and host national employees, the latter often seen merely as backseat players, are in fact keys to the successful activities of transnational organisations/corporations.     

The Future of Japanese Manufacturing in the UK

The expansion of Japanese FDI into the UK manufacturing sector during the 1980s and early 1990s gave rise to the debate on the Japanization of British industry. The paper argues that this debate was constructed from a Western perspective. It did not locate the strategies and structures of Japanese subsidiaries within the broader context of how Japanese multinational corporations were evolving in this period. The necessity to look at these issues from a more global perspective is reinforced by the changes which have occurred since the mid 1990s in the environment for Japanese multinationals. The global economy offers more choices to firms about their location as well as facing them with a more competitive environment. In the Japanese case, this is leading to a growing differentiation between standardized mass production (which can be located in Asia and Eastern Europe) and science–led sectors of industrial production (which necessitate location near to centres of research and development expertise in the USA and Europe). This means that Japanese firms are reconsidering the strategy and structure of their subsidiaries in the UK. Standardized mass production will only survive in the UK as long as costs can be pushed further down and productivity increased, both of which are difficult conditions to meet given possibilities elsewhere in the world for cheap mass production. The growing area of investment will be in science–based manufacturing, though here the UK will be competing against the USA and Germany for Japanese investment. Here, however, the organizational and management characteristics of Japanese subsidiaries will make the necessary connections with local managers and local networks of expertise difficult to achieve. Thus Japanese subsidiaries in the UK are in a period of prolonged uncertainty about their role in the future. These changes open up the necessity for a new agenda of research which goes beyond the Japanization approach and is concerned with the organization and management of Japanese multinationals in an era of global competition.     

Hired to be Fired: The Publicity Value of Managers

Sports teams frequently fire and hire managers when they experience losing. However, determining managerial responsibility for player performance is difficult to measure. This study examines how major‐league baseball players perform under different managers and estimates that managers have little effect on performance. The study further investigates whether or not replacing managers serves as a signal to fans that the team is improving, which boosts attendance. The results indicate that new managers were associated with increased attendance in the 2000s; however, such effects were not present in the 1980s and 1990s. Copyright © 2016 John Wiley & Sons, Ltd.     

Political Interests and the Emergence of Commercial Banking in Transition Economies*

abstract This paper examines how interactions between government agencies and banking organizations led to the emergence of commercial banking in the Czech Republic and Hungary during the 1990s. We rely on interviews with bank managers at six large banks, government officers, and experts at other organizations to learn how actions based on different political ideologies shaped the banking field. We integrate prior research on institutional change, political interest, and transition economies to describe the emergence of commercial banking. Three important problems characterized commercial banking in the two countries: the disposal of bad loans, the privatization of banks, and the establishment of banking services. We argue that the solutions to these problems based on the changing political interests of organizational actors and regulators represent the phases of institutional development in commercial banking during the 1990s. Implications of our research are discussed regarding the political perspective of organizational fields in transition economies.     

Japanese managers and British culture: a comparative case study

This paper examines the applicability of Japanese management practices in Britain within a socio-cultural perspective. Using a case study research in a Japanese multinational subsidiary in Britain, the paper argues that some management practices are incompatible with British societal and business cultural characteristics and are therefore not adopted by the Japanese managers working in this country. There are some practices which can more readily be adapted to local conditions and have successfully been implemented in Britain.     

Job transfers and job-bid systems in restructuring Japanese and American firms

When Japanese firms restructured their operations in the 1990s, Japanese employees were not fired and were often transferred together in groups inside firms or to related outside firms. Undergoing similar business restructuring from the late 1980s on, American firms fired low-performing white-collar employees, and excess midoodle-performing white-collar employees were fired if they could not locate other jobs in the firms by using 'job-bid' systems (systems that identifyopenings and allow individuals at their own choosing to 'bid' for those openings). American unionized blue-collar workers were laid off based on seniority rules. Although similar job-bid systems were introduced into Japanese firms in the 1990s, they were used only for certain white-collar jobs. In the United States, job-bid systems commonly were used for both blue- and white-collar employees. Overall, the Japanese employment system was characterized by management control and stable employment in contrast to the active role played by individual choice in an environment of unstable employment in the United States.     

Farewell to HRM? Personnel practices in Japanese manufacturing plants in the UK

While Japanese manufacturing investment burgeoned in the UK in the 1980s and 1990s, its relative size remained small. Nevertheless, its impact was greater than its size. At its extreme it was championed by the 'new right' as the way forward for industrial practices, while manufacturing organizations in the UK were quick to attempt to emulate Japanese management practices. Core to these practices was the management of human resources. Coincidentally in the 1980s a new model of personnel management was being championed, namely human resource management (HRM). This was eagerly embraced by UK academics and was translated into two distinct forms, 'hard and soft'. Despite appearing mutually incompatible, the hard and soft forms were forged into a unified model. This paper, drawing on an empirical analysis of personnel practices in Japanese manufacturing plants in the UK, searches for a conjuncture between the HRM model and 'Japanese' models. It concludes that, while there are similarities between the two, there are also distinct differences. Moreover, where similarities exist they are with the hard variety of HRM.     

Requiem for market discipline and the specter of TBTF in Japanese banking

This study examines the reaction of private market participants to the enhancement of the “Too-Big-To-Fail” (TBTF) doctrine in the Japanese banking sector. The event justifying the use of the “TBTF” label occurred on May 17th, 2003, when the Japanese government decided to bailout Resona Holdings, the 5th largest financial group in the country. By using a sample of all Japanese listed banks and the standard event study methodology, we document significant and positive wealth effects in the stock market accruing to large banks and negative (though non-significant) effects accruing to smaller banks. Besides the effect on bank equity values, we also document a significant abnormal volume of trading on days following the bailout announcement date for the largest banks only. We extend our empirical analysis on stock prices and trading volumes by detecting a significant impact in the Credit Default Swap (CDS) market. This last result allows us to quantify, in a probabilistic sense, the effects of TBTF in addition to uncovering the mere presence of such a regulatory policy.     

Managing the Managers: Japanese Management Strategies in the USA

One of the greatest difficulties Japanese multinationals have had is managing American managers in their US subsidiaries. The reason for this is fundamental and profound: Americans and Japanese conceive of management very differently and have strikingly different conceptions of themselves as managers and of correct management practice.
We do two things in this paper. First, borrowing from social psychology, we explore the idea of the 'management self'. Second, we report our research on management self-conception and style in Japanese-owned factories or 'transplants' in the USA.
The research reports the results of 34 interviews conducted with 19 US and Japanese managers in three electronics transplants. Each factory had adopted different combinations or 'hybridizations' of the management styles of the two countries. The three factories had very different characters. One was dominated by Japanese management practice, another by American practice, and the third was a hybrid of the two styles. We found four factors critical determinants of management style: the nationality of the general manager, a stated preference (or lack thereof) for bicultural management, control over the budget-setting process, and the strength of the Japanese assignees     

Labor supply responses to the 1990s Japanese tax reforms

The consumption-leisure choice model implies that an exogenous change in tax rates will induce a change in labor supply. This implication is expected to be important to labor supplied by secondary earners under a progressive tax system when spousal income alters effective marginal tax rates. This paper examines labor supply responses to the income tax changes associated with Japanese tax reforms during the 1990s. The results indicate that the hours-of-work elasticity with respect to the net-of-tax rate is 0.8 for married women.     

Medium Term Prospects for the Japanese Economy

The International perception of the Japanese economy has undergone a radical change over the last decade. Received wisdom has transformed Japan from the role model of the 1980s to the sluggard of the 1990s. In this article, Alistair Barr argues that Japan faces formidable challenges over the next twenty-five years, not least rapid ageing and population decline and the challenge of improving service sector productivity.     

The management of labour in Japanese manufacturing plants in China

While there is now considerable scholarship concerning Japanese management practices in their overseas production operations in Europe and North America, little is known about Japanese investment in other parts of the world, especially in Asia. This paper draws on on-going research into the nature and operations of Japanese manufacturing investments in China. The paper focuses on interviews primarily with Chinese managers in twenty plants in three locations within China, to examine their personnel polices and practices, and draw from this their overall industrial relations strategies. The main findings were, first, that, despite claims of cultural similarity between China and Japan, personnel management practices were generally not transferred from Japan to the plants in China. Second, practices that may appear as Japanese inspired were often informed by local practices. Third, there was diversity in the forms of practices used, indicating neither sophistication nor a singular recipe of management methods. Thus, the paper seeks to challenge proponents of Japanization who claim, essentially, that Japanese management techniques are predicated on the construction of particular forms of social relations around work that allow sophisticated, and integrated, production-management systems to function. Instead, depending on a complex interrelation between location industry and the history of each plant, managers sought to use various local and 'universal' (generic to capitalism) strategies and practices to control and utilize labour.     

Bank monitoring,managerial ownership and Tobin's Q: an empirical analysis for India

The paper examines how banking relationships and managerial ownership relate to firm valuation. It is argued that both the number of banking relationships (which serves as an external monitoring function) and managerial ownership (which serves as an internal monitoring function) affect firm value, while internal monitoring by managers and external monitoring by banks were viewed as substitutes or complements. After controlling for the effect of exogenous variables, the results reveal the existence of a complementary monitoring effect between banks and the managerial group. On the other hand, the results indicate that increased external monitoring by banks will simultaneously raise the incentive on the part of managers to engage in internal monitoring. Also, firm valuation is found to be a significant determinant of managerial ownership. A disaggregated analysis of firms according to size and leverage suggests the existence of a complementary monitoring effect between banks and managers, except for small‐sized firms. Copyright © 2007 John Wiley & Sons, Ltd.     

Labour management during recessions: Japanese manufacturing enterprises in the 1990s

In the first half of the 1990s Japan experienced a prolonged recession. How have Japanese firms reacted to the changed economic context? Using identical surveys administered in 1991 and 1995 this article examines changes in labour management and strategy and concludes, despite some significant modifications, that the basic configuration of Japanese labour management has remained intact.     

Times and Spaces of Homeless Regulation in Japan, 1950s–2000s: Historical and Contemporary Analysis

Since the late 1970s, Atlantic Fordism has seen rising homelessness and ghettoization as the ‘new urban poverty’ (NUP) (Mingione, 1996). Despite some similarities, the NUP in Japan has a unique rhythm and spatial pattern. In order to explore Japanese NUP, this article develops an interpretation of Japan's strategies to regulate poverty and homelessness during the last 50 years, paying particular attention to the spatial consequences of such strategies within major Japanese cities. First, I theorize long‐term economic growth patterns as a basic parameter of poverty and homelessness regulation and present a periodization of Japanese trends since the 1950s. Second, I analyze poverty in Japan and the transformation of national strategies of spatial regulation in the 1990s, when homelessness grew. Third, I examine the multi‐scalar processes through which new regulatory spaces of homelessness were produced in the 1990s and 2000s, when failures of post‐bubble crisis management ballooned in Japan. I argue that, through a dialectic between national/local rule‐setting and homelessness, the Japanese state fragmented the dominant scale of poverty regulation, rescaled the site of homeless regulation and contained homelessness in relatively autonomized cities. I conclude that, from the 1990s until the late 2000s, Japan's homelessness and its contradictions tended to be transferred to the spheres of urban workfare and urban policing, which I call new regulatory spaces of homelessness, that lie around the fringes of national social rights.     

Intervention analysis of SARS on Japanese tourism demand for Taiwan

Japan was Asia’s leading generator of international tourism in the 1980s and 1990s. Japanese tourists make up over 30% of all international tourists to Taiwan and they have been the highest ranking tourist source market since the early stages of the island’s tourism development in the 1970s. However, the Severe Acute Respiratory Syndrome (SARS) outbreak in 2003, the most catastrophic disaster in the past 100 years in Taiwan, had a huge impact on Japanese inbound tourism to the island. The purpose of this study is to evaluate how Japanese inbound arrivals have been affected by the SARS outbreak. A SARIMA with intervention model is used to assess the impact of the epidemic on inbound tourism from Japan to Taiwan in the aftermath of the SARS outbreak. The empirical results indicated that inbound tourism from Japan was devastated by the crisis, particularly during the first 5 months after the SARS outbreak. This study provides some helpful insight for the tourism industry to respond to the impact of exogenous shock.     

借鉴日元升值经验分析人民币升值及建议

我国面临的本币升值压力与二十世纪八、九十年代的日本有很大的相似性。本文通过分析日元升值对日本经济的积极和消极影响,借鉴日本的经验教训来讨论人民币升值的可能带来的影响及建议。     

Farewell to the salaryman? The changing roles and work of middle managers in Japan

The 1990s and 2000s witnessed significant organizational change in Japanese firms and accompanying readjustments to the employment system. Such changes potentially have major implications for middle managers, or salarymen, in Japanese corporations. A survey of human resource managers and middle managers in eight medium sized Japanese organizations pointed to fairly significant, if not radical, change. This did, indeed, impact upon middle managers in those organizations. While the middle managers felt reasonably secure in their jobs, the nature of their jobs had reportedly changed, with a greater range of tasks, work intensification, longer hours, greater stress, more accountability, and a worsening work–life balance.     

Earnings Management to Exceed the Threshold: A Comparative Analysis of Consolidated and Parent‐only Earnings*

This paper examines whether consolidated earnings are managed to a greater extent than parent‐only earnings or vice versa in an attempt to exceed the threshold in Japanese firms. The analysis reveals that earnings management to avoid earnings decreases is more pronounced in parent‐only earnings for the period 1980–1999. Further, it reveals that the management of parent‐only earnings has been less pervasive following the introduction of the new consolidated reporting system in March 2000. In addition, this paper provides evidence suggesting that earnings management in consolidated earnings increased after March 2000. These results indicate that the new consolidated reporting system and principles might affect the earnings management behaviors of Japanese firm managers.