Ownership structure changes, reforms and corporate restructuring: Evidence from Japan

Muhammad Shahid Iqbal and Khalid Mustafa

First published: 02 July 2018


This study explores the implications of control transfer and ownership structure on firm value and restructuring activities in Japan. We find that conventional banks and business group affiliations negatively impact firm value and organizational restructuring, but foreign and private individual shareholding have a positive impact on firm performance and its ability to restructure internally. Furthermore, the transfer of ownership control to market-oriented investors consistently results in greater firm value and restructuring activities that enhance economic efficiency of listed companies in Japan.

Keywords: Corporate governance, Organizational restructuring, Keiretsu, Business groups, Japan

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