Excess Capacity and Difficulty of Exit: Evidence from Japan's Electronics Industry

ISBN-13: 9789811648991 / Angielski / Miękka / 2021 / 130 str.

Sumio Saruyama; Peng Xu

Spis treści

Title

Acknowledgments

Contents

1 Introduction

1.1 The Requirement for Downsizing and Exit since the 1980s

1.2 Worldwide Difficulty of Downsizing and Exit

1.3 Purpose and Outline of the Book

References

2 Zombie Businesses in Electrical Industry: Case Studies

2.1 The case of NEC

2.2 The case of SONY

2.3 The case of Mitsubishi Electric

References

3 Misallocation of Internal Fund to Loss Making Zombie Businesses in Electrical Industry

3.1 Conceptual Framework

3.1.1 Empire-Building Hypothesis

3.1.2 Diversification Discount Hypothesis

3.1.3 Employment Protection Hypothesis

3.2 Empirical Design

3.3 Descriptive Statistics

3.4 Misallocation of Internal Fund to Loss Making Divisions

3.4.1 The Failure of Internal Governance

3.4.2 Waste of Internal Fund

3.5 Concluding Remarks

References

4 Subsequent Downsizing after Mergers of Respective Loss Making Divisions among Concerned Companies

4.1 The Case of Japan Display

4.2 The Case of Elpida

4.3 The Case of Renesas

4.4 Concluding Remarks

References

5 Final Remarks

5.1 New Findings of the Book: Delay of exit and the Lost Two Decades of Japan

5.2 Implication for the World

References

O autorze

Peng Xu is a professor at Hosei University, Tokyo, where he teaches corporate finance and corporate governance. His areas of expertise include hedge fund activism, corporate restructuring, and corporate governance. Dr. Xu is the author of numerous corporate finance and governance articles that have appeared in academic journals in economics, including the Journal of Japanese and International Economies, Japan and the World Economy, Journal of Restructuring Finance, and Journal of Financial Markets. He received the M&A Forum Award 2016 as a chapter author. He was a faculty fellow of the Research Institute of Economy, Trade and Industry during 2003–2006. He has served on several journal editorial boards, including as an editor of the Journal of Economic Policy Studies and the Law and Economics Review. He received his Ph.D. in economics from The University of Tokyo and his B.A. in social engineering from the University of Tsukuba.

Sumio Saruyama is a lead economist of the Japan Center for Economic Research (JCER). He received his B.A. from The University of Tokyo. He studied at Harvard University in 1985–1986. and received his Ph.D. in economics from Hosei University in 2018 for his research on exit behavior of troubled firms. At JCER, he is involved in analysis and policy recommendations on structural issues in the Japanese economy, such as the declining birthrate and aging population, public finance, and trade policies.