'Outside' Intervention in Japanese Companies: Its Determinants and Implications for Mangers / Steven Kaplan, Bernadette Minton.

Format:

Book

Author/Creator:

Kaplan, Steven.

Contributor:

National Bureau of Economic Research.

Minton, Bernadette.

Series:

Working Paper Series (National Bureau of Economic Research) no. w4276.

NBER working paper series no. w4276

Language:

English

Subjects (All):

Chief executive officers--Selection and appointment.

Chief executive officers.

Corporations--Finance.

Corporations.

Physical Description:

1 online resource: illustrations (black and white);

Other Title:

Outside' Intervention in Japanese Companies

Place of Publication:

Cambridge, Mass. National Bureau of Economic Research 1993.

Cambridge, Massachusetts : National Bureau of Economic Research, 1993.

Summary:

This paper estimates the determinants of appointments of 'outsiders' -- directors previously employed by banks or other non-financial firms -- to the boards of large (non-financial) Japanese companies. Appointments of both types of 'outsiders' increase with poor stock performance; those of bank outsiders also increase with negative current income. Appointments of bank outsiders are related to firm debt levels; those of corporate outsiders, to shareholder concentration and group affiliation, Both types of outsider appointments appear to be disciplinary -- top executive turnover increase substantially in the same year. Additional evidence on subsequent firm performance suggests that "bank" directors are appointed in financially distressed or contracting firms, while "corporate" directors are appointed in firms with temporary problems.

Notes:

Print version record

February 1993.