The impact of ownership structure on wage intensity in Japanese corporations

The impact of ownership structure on wage intensity in Japanese corporations

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 sh...

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Bibliographic Details
Main Authors: YOSHIKAWA, Toru, PHAN, Phillip H., DAVID, Parthiban
Format: text
Language:English
Published: Institutional Knowledge at Singapore Management University 2005
Subjects:
corporate governance
Japan
human capital theory
ownership structure
theory of the firm
Asian Studies
Business Law, Public Responsibility, and Ethics
Organizational Behavior and Theory
Strategic Management Policy
Online Access:https://ink.library.smu.edu.sg/lkcsb_research/2719
https://ink.library.smu.edu.sg/context/lkcsb_research/article/3718/viewcontent/ImpactOwnershipStructureWageIntensity_2005_JOM.pdf
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Institution: Singapore Management University
Language: English
Description
Summary: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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