Foreign ownership and firm performance: Evidence from Japan's electronics industry

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dc.contributor.author Nakano, M
dc.contributor.author Nakano, M
dc.contributor.author Nguyen, PD
dc.contributor.author Nguyen, PD
dc.date.accessioned 2014-04-03T01:53:33Z
dc.date.issued 2013-01
dc.date.issued 2013-01
dc.identifier.citation Applied Financial Economics, 2013, 23 (1), pp. 41 - 50
dc.identifier.citation Applied Financial Economics, 2013, 23 (1), pp. 41 - 50
dc.identifier.issn 0960-3107
dc.identifier.issn 0960-3107
dc.identifier.other C1 en_US
dc.identifier.uri http://hdl.handle.net/10453/23444
dc.description.abstract Foreign investors have in recent years increased their ownership of Japanese firms. Has this greater involvement contributed to improve firm performance? We show that the answer depends on the assumptions regarding the unobservable firm effects. If the latter are assumed to be time invariant, as in most existing studies, the influence of foreign investors appears to be positive. However, unobserved firm characteristics are unlikely to be constant in the case of electronics firms. Using dynamic panel data estimation, we show that the effect of foreign ownership on operating profits has been initially insignificant, but is starting to show up strongly in the more recent period. On the other hand, the immediate impact has been to raise expectations about future firm performance.
dc.description.abstract Foreign investors have in recent years increased their ownership of Japanese firms. Has this greater involvement contributed to improve firm performance? We show that the answer depends on the assumptions regarding the unobservable firm effects. If the latter are assumed to be time invariant, as in most existing studies, the influence of foreign investors appears to be positive. However, unobserved firm characteristics are unlikely to be constant in the case of electronics firms. Using dynamic panel data estimation, we show that the effect of foreign ownership on operating profits has been initially insignificant, but is starting to show up strongly in the more recent period. On the other hand, the immediate impact has been to raise expectations about future firm performance.
dc.publisher Routledge
dc.publisher Routledge
dc.relation.isbasedon 10.1080/09603107.2012.705425
dc.relation.isbasedon 10.1080/09603107.2012.705425
dc.subject foreign investors, performance, unobserved heterogeneity, dynamic panel, GMM, Finance
dc.subject foreign investors, performance, unobserved heterogeneity, dynamic panel, GMM, Finance
dc.subject foreign investors, performance, unobserved heterogeneity, dynamic panel, GMM; Finance
dc.subject foreign investors, performance, unobserved heterogeneity, dynamic panel, GMM; Finance
dc.title Foreign ownership and firm performance: Evidence from Japan's electronics industry
dc.title Foreign ownership and firm performance: Evidence from Japan's electronics industry
dc.type Journal Article
dc.parent Applied Financial Economics
dc.parent Applied Financial Economics
dc.journal.volume 1
dc.journal.volume 1
dc.journal.volume 23
dc.journal.volume 23
dc.journal.number 1 en_US
dc.publocation London, UK en_US
dc.identifier.startpage 41 en_US
dc.identifier.endpage 50 en_US
dc.cauo.name BUS.Finance en_US
dc.conference Verified OK en_US
dc.for 1502 Banking, Finance and Investment
dc.for 1502 Banking, Finance and Investment
dc.for 1402 Applied Economics
dc.for 1402 Applied Economics
dc.personcode 0000081555 en_US
dc.personcode 103857 en_US
dc.percentage 50 en_US
dc.classification.name Applied Economics en_US
dc.classification.type FOR-08 en_US
dc.edition en_US
dc.custom en_US
dc.date.activity en_US
dc.location.activity en_US
dc.description.keywords foreign investors, performance, unobserved heterogeneity, dynamic panel, GMM en_US
dc.description.keywords Fluidized bed Mathematical model Organic removal Organic fraction Purolite(R)A500PS
dc.description.keywords foreign investors, performance, unobserved heterogeneity, dynamic panel, GMM
dc.description.keywords foreign investors, performance, unobserved heterogeneity, dynamic panel, GMM
dc.staffid 103857 en_US
pubs.embargo.period Not known
pubs.organisational-group /University of Technology Sydney
pubs.organisational-group /University of Technology Sydney/Faculty of Business
pubs.organisational-group /University of Technology Sydney/Faculty of Business
pubs.organisational-group /University of Technology Sydney/Strength - Corporate Governance
pubs.organisational-group /University of Technology Sydney/Strength - Corporate Governance


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