The impact of ownership structure on wage intensity in Japanese corporations

Toru Yoshikawa; Phillip H. Phan; Parthiban David

doi:10.1177/0149206304271766

The impact of ownership structure on wage intensity in Japanese corporations

Toru Yoshikawa, Phillip H. Phan, Parthiban David

Research output: Contribution to journal › Article › peer-review

41 Scopus citations

Abstract

The authors studied the effect of ownership structure on human capital investments as indicated by wage intensity, defined as the ratio of expenditure on employee wages to sales, in a sample of 996 Japanese manufacturing firms during their economic recession of 1998-2002. They found that domestic shareholders, with interests beyond financial considerations, enhance wage intensity, especially when performance is low, and thereby safeguard human capital investments. Foreign shareholders with sole interest in financial returns have an opposite effect; they reduce wage intensity when firm performance is low.

Original language	English (US)
Pages (from-to)	278-300
Number of pages	23
Journal	Journal of Management
Volume	31
Issue number	2
DOIs	https://doi.org/10.1177/0149206304271766
State	Published - Apr 2005
Externally published	Yes

Keywords

Corporate governance
Human capital theory
Japan
Ownership structure
Theory of the firm

ASJC Scopus subject areas

Finance
Strategy and Management

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AB - The authors studied the effect of ownership structure on human capital investments as indicated by wage intensity, defined as the ratio of expenditure on employee wages to sales, in a sample of 996 Japanese manufacturing firms during their economic recession of 1998-2002. They found that domestic shareholders, with interests beyond financial considerations, enhance wage intensity, especially when performance is low, and thereby safeguard human capital investments. Foreign shareholders with sole interest in financial returns have an opposite effect; they reduce wage intensity when firm performance is low.

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KW - Ownership structure

KW - Theory of the firm

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The impact of ownership structure on wage intensity in Japanese corporations

Abstract

Keywords

ASJC Scopus subject areas

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