The effects of ownership and capital structure on board composition and strategic diversification in Japanese corporations

The board of directors plays an important role in solving the agency problem between shareholders and management. This paper investigates the relationships between ownership and board structure with the diversification strategy of large Japanese firms. The results show that corporate nominee directo...

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Main Authors: Yoshikawa, Toru, PHAN, Phillip H.
Format: text
Language:English
Published: Institutional Knowledge at Singapore Management University 2005
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Online Access:https://ink.library.smu.edu.sg/lkcsb_research/2720
https://ink.library.smu.edu.sg/context/lkcsb_research/article/3719/viewcontent/EffOwnershipKStructureBoardComp_2005.pdf
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Institution: Singapore Management University
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spelling sg-smu-ink.lkcsb_research-37192017-01-17T06:57:25Z The effects of ownership and capital structure on board composition and strategic diversification in Japanese corporations Yoshikawa, Toru PHAN, Phillip H. The board of directors plays an important role in solving the agency problem between shareholders and management. This paper investigates the relationships between ownership and board structure with the diversification strategy of large Japanese firms. The results show that corporate nominee directors are associated with lower levels of product diversification of their investee firms. This suggests that nominee directors in large Japanese corporations see themselves representing specific interests and therefore investors should pay attention to board composition in order to assess the level of protection they can expect to receive. Even without any apparent agency problem with management, there remains a potential “principal-principal” problem. 2005-03-01T08:00:00Z text application/pdf https://ink.library.smu.edu.sg/lkcsb_research/2720 info:doi/10.1111/j.1467-8683.2005.00424.x https://ink.library.smu.edu.sg/context/lkcsb_research/article/3719/viewcontent/EffOwnershipKStructureBoardComp_2005.pdf http://creativecommons.org/licenses/by-nc-nd/4.0/ Research Collection Lee Kong Chian School Of Business eng Institutional Knowledge at Singapore Management University Corporate governance ownership structure board of directors diversification Japanese firm Asian Studies Business Law, Public Responsibility, and Ethics Strategic Management Policy
institution Singapore Management University
building SMU Libraries
continent Asia
country Singapore
Singapore
content_provider SMU Libraries
collection InK@SMU
language English
topic Corporate governance
ownership structure
board of directors
diversification
Japanese firm
Asian Studies
Business Law, Public Responsibility, and Ethics
Strategic Management Policy
spellingShingle Corporate governance
ownership structure
board of directors
diversification
Japanese firm
Asian Studies
Business Law, Public Responsibility, and Ethics
Strategic Management Policy
Yoshikawa, Toru
PHAN, Phillip H.
The effects of ownership and capital structure on board composition and strategic diversification in Japanese corporations
description The board of directors plays an important role in solving the agency problem between shareholders and management. This paper investigates the relationships between ownership and board structure with the diversification strategy of large Japanese firms. The results show that corporate nominee directors are associated with lower levels of product diversification of their investee firms. This suggests that nominee directors in large Japanese corporations see themselves representing specific interests and therefore investors should pay attention to board composition in order to assess the level of protection they can expect to receive. Even without any apparent agency problem with management, there remains a potential “principal-principal” problem.
format text
author Yoshikawa, Toru
PHAN, Phillip H.
author_facet Yoshikawa, Toru
PHAN, Phillip H.
author_sort Yoshikawa, Toru
title The effects of ownership and capital structure on board composition and strategic diversification in Japanese corporations
title_short The effects of ownership and capital structure on board composition and strategic diversification in Japanese corporations
title_full The effects of ownership and capital structure on board composition and strategic diversification in Japanese corporations
title_fullStr The effects of ownership and capital structure on board composition and strategic diversification in Japanese corporations
title_full_unstemmed The effects of ownership and capital structure on board composition and strategic diversification in Japanese corporations
title_sort effects of ownership and capital structure on board composition and strategic diversification in japanese corporations
publisher Institutional Knowledge at Singapore Management University
publishDate 2005
url https://ink.library.smu.edu.sg/lkcsb_research/2720
https://ink.library.smu.edu.sg/context/lkcsb_research/article/3719/viewcontent/EffOwnershipKStructureBoardComp_2005.pdf
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