Capital Structure and Firm Performance. Evidence from Japan Nikkei 225
Capital Structure and Firm Performance. Evidence from Japan Nikkei 225

Author: Tobias Burkhart

Publisher: GRIN Verlag

Published: 2021-08-09

Total Pages: 65

ISBN-13: 3346462404

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Master's Thesis from the year 2020 in the subject Business economics - Investment and Finance, grade: 1,3, University of Greenwich, language: English, abstract: This study investigates what kind of impact different leverage ratios have on firm performance measurements Return on Assets, Return on Equity and Tobin’s Q in selected firms listed on Nikkei 225 stock market (excluding Finance & Technology Sector). Furthermore, the influence of sector specific and possible control variables on capital structure (using long- & short-debt ratios) as well as firm performance will be analysed. The sample derive from 165 firms during the time period from 2014 to 2019 and analysed by using various Models multiple regression analysis. Control variables Size and Growth show a clear positive effect on firm performance. In contrast, Tangibility has a negative impact on the model in which all companies are included, but has more positive coefficients in the model in which companies are divided into their industries. Additionally, this study suggests that the effect of leverage on firm performance differs among industries. Short- and long-term debt has positive impacts on different firm performance measurements by the Materials, Reals Estate, Energy and Communication Services Sector.

Corporate Groups, Capital Investments and Stock Returns in Japan
Corporate Groups, Capital Investments and Stock Returns in Japan

Author: K.C. John Wei

Publisher:

Published: 2003

Total Pages: 26

ISBN-13:

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This paper presents evidence that suggests that in Japan, corporate ownership structure affects the relation between capital investment expenditures and firm performance. Specifically, there is a negative relation between capital expenditures and subsequent risk-adjusted returns amongst keiretsu firms, which have a strong banking relationship, but a positive relation amongst independent firms. There is no relation between these returns and financial constraints for keiretsu firms. However, the positive relation between capital investments and stock returns for independent firms is strongest for those firms that have the lowest cash flows, and are thus likely to be the most financially constrained.

Growth Opportunities, Capital Structure and Dividend Policies of Japanese Firms
Growth Opportunities, Capital Structure and Dividend Policies of Japanese Firms

Author: Ferdinand A. Gul

Publisher:

Published: 1998

Total Pages:

ISBN-13:

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This paper, using 5,308 observations of listed Japanese firms between the years 1988-1992, provides additional evidence on contracting theory arguments for the relationships between growth opportunities, capital structure and dividend policies. In order to avoid the problems of using cross-sectional proxies for time-sequenced variables, this study used (1) pooled cross-sectional time-series and (2) time-series with a one-year lag for the dependent variables. Results which are consistent with contracting cost arguments showed that there were significant negative relationships between growth opportunities and levels of debt financing and dividend yields, respectively, after controlling for firm size and profitability. In addition, consistent with theory, it was found that there were more large firms in the nongrowth category than there were in the growth category. There were also no differences in profitability between growth and nongrowth firms.

Capital Structure and Firm Performance
Capital Structure and Firm Performance

Author: Arvin Ghosh

Publisher: Routledge

Published: 2017-07-05

Total Pages: 140

ISBN-13: 1351530178

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Capital structure theory is one of the most dynamic areas of finance and forms the basis for modern thinking on the capital structure of firms. Much controversy has resulted from comparisons of the theory of capital structure originally developed by Franco Modigliani and Merton Miller to real-world situations. Two competing theories have emerged over the years, the optimal capital structure theory and the pecking order theory.Arvin Ghosh begins with an overview of the controversies regarding capital structure theories, and then statistically tests both the optimal capital structure and pecking order theories. Using the binomial approach he analyzes the determinants of capital structure while discussing the role of market power in determining capital structure decisions. Ghosh probes the questions of new stock offerings and stockholders' returns, and analyzes capital structure and executive compensation. He then looks into debt financing ownership structure, and the controversal relationship between capital structure and firm profitability. Finally, he discusses the latest developments in the field of capital structure.A concise overview of a major issue in business economics and finance, this volume provides a fuller understanding of capital structure influence on the financial performance of firms, and will certainly stimulate further debate. While hundreds of scholarly articles have been written on the subject this is the first book to test competing theories against measurements of firms' performance and their underlying capital structure.

Corporate Governance in Japan
Corporate Governance in Japan

Author: Masahiko Aoki

Publisher: OUP Oxford

Published: 2007-09-06

Total Pages: 480

ISBN-13: 0191536385

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Debates regarding corporate governance have become increasingly important in Japan as the post-war model of bank-based, stakeholder-oriented corporate governance faces the new pressures associated with globalization and growing investor demands for shareholder value. Bringing together a group of leading scholars from economics, law, sociology and management studies, this book looks at how the Japanese approach to corporate governance and the firm have changed in the post-bubble era. The contributions offer a unique empirical exploration of why and how Japanese firms are reshaping their corporate governance arrangements, leading to greater diversity among firms and new 'hybrid' forms of corporate governance. The book concludes by looking at what effect these incremental but transformative changes may have on Japan's distinctive variety of capitalism.

Finance Reconsidered
Finance Reconsidered

Author: Bernard Paranque

Publisher: Emerald Group Publishing

Published: 2016-09-06

Total Pages: 441

ISBN-13: 1785609793

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This volume argues the need for a radical break with the methodological individualism that dominates economics, management and finance, asking 'How should we (re)define the concept of value?' and serving as a stepping stone for the rethinking of academic finance.

Empirical Capital Structure
Empirical Capital Structure

Author: Christopher Parsons

Publisher: Now Publishers Inc

Published: 2009

Total Pages: 107

ISBN-13: 160198202X

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Empirical Capital Structure reviews the empirical capital structure literature from both the cross-sectional determinants of capital structure as well as time-series changes.

Corporations in Evolving Diversity
Corporations in Evolving Diversity

Author: Masahiko Aoki

Publisher: Oxford University Press

Published: 2010-05-06

Total Pages: 227

ISBN-13: 0199218536

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The 2008-9 financial crisis demands we look anew at the role of corporations, and the working of financial markets around the world. In this book, Masahiko Aoki provides a compelling new analysis of the corporate firm; the role of shareholders, managers and workers; and institutional governance structures.

Crisis and Change in the Japanese Financial System
Crisis and Change in the Japanese Financial System

Author: Takeo Hoshi

Publisher: Springer Science & Business Media

Published: 2000-05-31

Total Pages: 350

ISBN-13: 9780792377832

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Specialists in various aspects of the Japanese financial industry describe, analyze, and evaluate the crisis that began with bursting real east bubbles in the early 1990s and resulting non-performing loans, delay by regulatory authorities and the banks themselves, a decompressive deregulation in 1996, major reforms in 1998 and early 1999 that made $500 billion of government funds available, and the resulting lack of regulatory control. In the context of the transition from a bank-centered and relationship-based system to market-based and competitive, they investigate why the banks got into such serious trouble, why the Ministry of Finance lost its immense power, how financial regulation will further change the industry and the huge government financial institutions and postal savings, and what some broader implications are of the transitions. Most of the 12 studies are revised from presentations at an October 1998 conference in New York. Annotation copyrighted by Book News, Inc., Portland, OR