Strategic investments in Japanese corporations: Do foreign portfolio owners foster underinvestment or appropriate investment?

• Main Authors: DAVID, Parthiban, YOSHIKAWA, Toru, CHARI, Murali D. R., RASHEED, Abdul A.
• Format: text
• Language: English
• Published: Institutional Knowledge at Singapore Management University 2006
• Subjects: Corporate governance; R&D; ownership; Japan; Asian Studies; Business Law, Public Responsibility, and Ethics; Strategic Management Policy
• Online Access: https://ink.library.smu.edu.sg/lkcsb_research/2507; https://ink.library.smu.edu.sg/context/lkcsb_research/article/3506/viewcontent/StrategicInvJapaneseCorp_SMJ_2006.pdf
• Institution: Singapore Management University

This paper investigates the effect of foreign ownership on strategic investments in Japanese corporations. Foreign owners are typically portfolio investors who frequently buy and sell shares and hold diversified portfolios of small stakes in many firms. Prior research has presented two conflicting p...