Business, Management and Accounting
8 years ago

Institutional investors boost Japanese business performance, leaving banks behind.

Public Policy Review
Ownership Structure and Corporate Governance: Has an Increase in In- stitutional Investors' Ownership Improved Business Performance? *
Hideaki Miyajima, Takaaki Hoda

Paper Summary

Related papers

Business, Management and Accounting
8 years ago

Institutional investors drive corporate governance, risk, and profits in global markets.

Corporate Governance
Sovereign Wealth
Risk Management
1 view
Business, Management and Accounting
8 years ago

Institutional investors drive higher cash dividends in Chinese stock market.

Corporate Governance
Business, Management and Accounting
8 years ago

Government ownership in European oil industry linked to earnings manipulation.

Corporate Governance
Earnings Management
Credit Risk

The article explores how changes in ownership structure affect corporate governance in Japanese companies. Institutional investors prefer high-quality stocks, while banks and insurance companies invest in lower-quality ones. Foreign investors focus on formal governance features and have a home bias. Share ownership by institutional investors improves enterprise value and corporate earnings, while ownership by banks and insurance companies has negative effects. This shows that institutional investors can monitor companies effectively by potentially selling their shares or voicing complaints.