The impact of ownership structure on wage intensity in Japanese corporations

Toru Yoshikawa, Phillip H. Phan, Parthiban David

Research output: Contribution to journalArticlepeer-review

41 Scopus citations


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 languageEnglish (US)
Pages (from-to)278-300
Number of pages23
JournalJournal of Management
Issue number2
StatePublished - Apr 2005
Externally publishedYes


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

ASJC Scopus subject areas

  • Finance
  • Strategy and Management


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