FINANCIAL DISTRESS AND INDUSTRY STRUCTURE: AN INTER-INDUSTRY APPROACH TO THE LOST DECADE IN JAPAN

This paper proposes a novel approach to investigating the propagation mechanism of balance sheet deterioration in financial institutions and firms, by extending the input–output analysis. First, we use a unique input–output table augmented by firm size dimension. Second, we link the input–output table with the balance sheet conditions of financial institutions and firms. Based on Japanese input–output tables, we find that the lending attitude of financial institutions affected firms’ input decision in the late 1990s and the early 2000s. Simulation exercises are conducted to evaluate the effects of changes in the lending attitude toward small firms as favorable as that toward large firms on sectoral allocations. We find that output was increased for small firms and reduced for large firms. The change in output was non-negligible, about 5.5% of the initial output of each sector. In particular, it exceeded 20% in textile, iron and steel and fabricated metal products.     

Habit Formation And The Transfer Paradox

Using a two-country model with habit-forming consumers, we show that the transfer paradox can occur in a free-trade, dynamically stable economy. When the debtor is more in the habit of consuming than the creditor, an income transfer from the creditor to the debtor raises the interest rate in transition through changes in time preference. With sufficiently low elasticities of intertemporal substitution and/or sufficiently large stocks of the creditor's assets, the intertemporal terms-of-trade effect immiserizes the recipient and enriches the donor. This possibility cannot be excluded by the correspondence principle ( à la Burmeister and Long) as the dynamics are saddlepoint-stable.     

Comment on Fritz Breuss “WTO Dispute Settlement: An Economic Analysis of Four EU–US Mini Trade Wars”

In his excellent empirical analysis of the WTO dispute settlement process, Fritz Breuss has amply demonstrated the undesirability of trade retaliation by applying the CGE model to the transatlantic mini trade wars in the Hormones, Bananas, Foreign Sales Corporations and Steel Safeguards cases. The author's conclusion that tariffs are very bad instruments for countermeasures is uncontested. However, the practicability of a mechanism of direct transfers as proposed by the author may be questionable. The comments also discuss the purpose of retaliation (countermeasures) in the WTO dispute settlement system and summarize Japan's experience with the WTO dispute settlement mechanism.     

Cognitive discrepancy in Chinese ��face��: Mian and lian, and their impact on cognition of country-of-origin image

Chinese “face,” as a complex social and psychological phenomenon, has attracted much attention from the fields of sociology and psychology. However, in the field of consumer behavior, research about how mianzi (face) affects consumer behavior is lacking. Moreover, research on the connotations of sub-dimension of mianzi (face), that is, lian and mian as well as their influences on consumer behavior is seldom seen. Based on the grounded theory, using focus group interviews and the self-report method, this study extracted scenario sentences of lian and mian, initially forming a preliminary scale with 14 positive items and 20 negative items concerning lian and mian. Moreover, by using close-ended questionnaire originated from previous grounded theory in terms of Chinese face, this study validated the discrepancy between “mian” and “lian.” Besides the discrepancy between “mian” and “lian” also appeared in consumer perception about product category and country-of-origin image.     

The effects of skirt lining properties on comfort and movement

This study was conducted to clarify the influences of the lining properties of skirts upon comfort and movement. The comfort of lining fabrics and real skirts with and without lining was rated by sensory tests on the basis of sensorial comfort on the skin and body movement. Actual body movements were investigated by motion analysis while the skirts were being worn. The results are described: (1) Comfort on the skin, movement and overall preference for the lining fabrics were evaluated by sensory testing, comparing skirts made with five kinds of lining fabrics. Conventional non‐stretch cupro lining was ranked first on the basis of smoothness and good feel to the skin. Two‐way stretch lining was also ranked highly in terms of ease of movement. We discuss how sensorial comfort on the skin and ease of movement related to overall preference for lining fabrics. (2) Sensory test of the actual skirts with and without lining clearly confirmed that lining played a role in improving comfort. (3) For a non‐stretch fabric skirt, conventional lining was ranked highly for good feel to the skin, and two‐way stretch lining was considered useful for ease of movement. There was no significant difference between the two lining fabrics in overall preference. (4) For a stretch fabric skirt, stretch lining is the most useful because it maintains easy extension of the outer fabric, thus allowing ease of body movement. (5) Motion analysis showed that a combination of knitted stretch skirts with stretch lining was the best for ease of movement. Comparing the sidelines and the hemline of the stretch fabric skirts demonstrated a better shape using lining.     

Corporate Governance System and Regional Heterogeneity: Evidence from East and West Russia

Abstract

Using a unique firm-level dataset obtained from a large-scale questionnaire survey conducted in late 2015, we examined the generality and heterogeneity of corporate governance systems between the eastern and western regions of Russia. The survey results strongly suggest that the governance system in the surveyed firms is generally characterized by: the dominance of closed corporate forms, the polarization trend in boards of directors and audit committees in terms of their independence from senior management, the reluctance to employ independent directors or expert auditors, and the strong preference for local auditors and indigenous audit firms as external auditors. At the same time, however, we also found that the probability of establishment of the governance bodies, appointment of independent directors and expert auditors, and execution of external audit in the eastern companies is significantly lower than that in the western counterparts. This finding is robust, even after a series of firm-level attributes are simultaneously controlled for.     

Ownership dynamics and firm performance in an emerging economy: a meta-analysis of the Russian literature

This paper provides a meta-analysis of studies on the effect of ownership on the performance of Russian firms over 20 years of rapid institutional and economic changes. We review 29 studies extracted from the EconLit and Web of Science databases with a total of 877 relevant estimates. We find that the government negatively affects company performance regardless of its administrative level. In contrast, private ownership is positively associated with firm performance. However, the effect size and statistical significance are notably varied among different types of private ownership. While the effect of insider (employee and management) ownership is comparable to that of foreign investors, the effect of domestic outsider investors is considerably smaller. Our assessment of publication selection bias reveals that the existing literature does not contain genuine evidence for a series of ownership types and, therefore, some of the findings have certain limitations.