scholarly journals Purifying Japan's Banks: Issues and Implications

2006 ◽  
Vol 5 (1) ◽  
pp. 1-32 ◽  
Author(s):  
Randall Morck ◽  
Bernard Yeung
Keyword(s):  
Corporate Governance ◽  
Real Options ◽  
Risk Taking ◽  
Empirical Data ◽  
Physical Capital ◽  
Cash Flows ◽  
Postwar Reconstruction ◽  
Catching Up ◽  
Residual Claimants ◽  
Capital Intensive

We use a simple real options framework and empirical data to establish that although Japanese banks hold borrowers' shares, their interest is more along the lines of a contractual claimant than a residual claimant of corporations. We then explain why the Japanese model of corporate governance was useful during the “catching-up” growth of that country's postwar reconstruction decades but became problematic subsequently. The interests of shareholders, creditors, workers, and managers are more readily aligned because such growth entails investment in knowntechnology physical-capital-intensive projects with highly predictable cash flows. Once firms are on the technological frontier, “keeping-up” growth requires risk taking and a tolerance for “creative destruction.” This is better accommodated by entrusting corporate governance to firms' true residual claimants, their shareholders.

scholarly journals Industrial Policy and the East German Productivity Puzzle

2000 ◽  
Vol 1 (3) ◽  
pp. 315-333 ◽  
Author(s):  
Henning Klodt
Keyword(s):  
Human Capital ◽  
Industrial Policy ◽  
Structural Adjustment ◽  
Physical Capital ◽  
Industrial Structures ◽  
Catching Up ◽  
Capital Endowment ◽  
Public Subsidies ◽  
East German ◽  
Capital Intensive

Abstract Catching-up of East German productivity to West German levels has completely faded out since the mid-1990s. The remaining productivity gap cannot be attributed to an inferior capital endowment or qualification deficiencies of the East German labor force. Instead, it appears to be the result of an inappropriate design of industrial policy which concentrated on the subsidization of physical capital and largely ignored the advance of human capital- and service-intensive industrial structures. East Germany will have to face another wave of painful structural adjustment when capital-intensive industries are no longer protected from competition by public subsidies.

Board diversity and firm risk-taking in the tourism sector: Moderating effects of board independence, CEO duality, and free cash flows

2021 ◽  
pp. 135481662110143
Author(s):  
Ozgur Ozdemir ◽  
Ezgi Erkmen ◽  
Fatemeh Binesh
Keyword(s):  
Risk Taking ◽  
Composite Index ◽  
Cash Flows ◽  
Board Independence ◽  
Firm Risk ◽  
Board Diversity ◽  
Ceo Duality ◽  
Reduction Effect ◽  
Task Oriented ◽  
Free Cash Flows

This study examines the effect of board diversity on risk-taking for tourism firms and analyzes the moderating effect of board independence, CEO duality, and free cash flows in this proposed relationship. Using a composite index of board diversity and a sample of tourism firms from the US hotel, restaurant, and airline industries, we find that greater board diversity leads to lower risk-taking, measured in standard deviation of return on assets. Moreover, we report that the risk-reduction effect of board diversity is more profound when tourism firms have less board independence and less free cash flows for investments. When board diversity is decomposed into relation-oriented and task-oriented diversity attributes, we find that only the task-oriented diversity is influential in reducing firm risk-taking for tourism firms. Akin to main analysis, the board independence and free cash flows are significant moderators of the relationship between task-oriented diversity and firm risk-taking.

Does corporate governance influence corporate risk-taking? Evidence from the Institutional Shareholders Services (ISS)

2015 ◽  
Vol 13 ◽  
pp. 105-112 ◽  
Author(s):  
Pornsit Jiraporn ◽  
Pattanaporn Chatjuthamard ◽  
Shenghui Tong ◽  
Young Sang Kim
Keyword(s):  
Corporate Governance ◽  
Risk Taking ◽  
Institutional Shareholders ◽  
Corporate Risk

scholarly journals Relationship Between Free Cash Flows and Corporate Governance Levels in the Light of Agency Theory

2021 ◽  
Vol 20 ◽  
pp. e3206
Author(s):  
Glaysson Aguilar de Araújo ◽  
Lara Alves Corrêa ◽  
Valéria Gama Fully Bressan ◽  
João Estevão Barbosa Neto ◽  
Bruna Camargos Avelino
Keyword(s):  
Corporate Governance ◽  
Stock Market ◽  
Cash Flows ◽  
Least Square ◽  
Publicly Traded ◽  
Potential Conflict ◽  
Return On Equity ◽  
Publicly Traded Companies ◽  
Corporate Governance Mechanisms ◽  
Free Cash Flows

This research analyzes the relationship between free cash flows (FCFs) and the different levels of Corporate Governance present in the Brazilian stock market. To this end, the sample was composed of 212 Brazilian publicly traded companies listed on Brasil, Bolsa, Balcão [B]³, in the period from 2010 to 2018. The methodology consisted of estimating a regression for panel data, using the random effects model, estimating by generalized least square (GLS) and assuming adjustments for autocorrelation and robust standard errors for heteroscedasticity. The results found, for the sample studied, suggest that Corporate Governance levels are positively related to the FCFs. In synergy, when compared to the Traditional level of [B]³, companies listed on the Novo Mercado and Level 2 levels tend to present higher FCF values. In addition, the larger the size of the companies and the higher their return on equity, the higher their FCFs tend to be, just as companies in stages of maturity tend to present lower FCF values. The relevance of this research is based on analyzing, in a stock market subject to imperfections, factors that may affect decisions about the level of cash maintenance of companies, more specifically by evaluating how Corporate Governance mechanisms relate to the theory of FCFs, in a context of potential conflict of interest.

scholarly journals EVOLUTION OF VIETNAM’S ECONOMIC STRATEGY IN MODERN ARCHITECTONICS OF GLOBAL ECONOMIC RELATIONS

2021 ◽  
Author(s):  
Dmytro Kolechko
Keyword(s):  
Market Reform ◽  
Socialist Republic ◽  
Economic Strategy ◽  
Economic Relations ◽  
Postwar Reconstruction ◽  
Catching Up ◽  
Role Of The State ◽  
Third Stage ◽  
Strategic Goals ◽  
Internal And External Factors

The article analyzes the evolution of Vietnam’s economic strategy based on the concept of institutional archi- tecture. The main internal and external factors that determined the goals of the economic strategy of the Socialist Republic of Vietnam since its inception have been identified. The evolution of the country’s economic strategy in response to the change of target priorities under the influence of not only internal factors, but also in view of the formation of global architecture is substantiated. There are four main stages in the evolution of Vietnam’s economic strategy in global architectonics according to the main characteristics. The first stage (1975–1985) of the transition from an autonomous to a partially autonomous economic strategy of Vietnam in global architecture is characterized as postwar reconstruction, unification of economic complexes of the northern and southern territories into a single system on a planning and administrative basis and external economic integration on the ideological principle. The second stage (1986–2001) of the transition from an autonomous to a partially open economic strategy of regional orientation is characterized by market reform while maintaining the directive role of the state and a pragmatic regional foreign economic strategy. The third stage (2002–2010) of the transition from a partially open economic strategy of regional orientation to a partially open economic strategy of global orientation is characterized by expanding the spheres of market reform while maintaining planning and administrative principles and increasing openness in foreign economic strategy. The fourth stage (2011 – present) the transition to an open export-oriented economic strategy of catching up is characterized by expanding market economy, increasing transparency of state-owned enterprises, narrowing sectors of direct planning and administrative management, pragmatism in geoeconomic strategy, expanding global participation. The results of the economic strategy and significant successes in the market reform of Vietnam’s economy are manifested in high rates of economic growth, improving the welfare of the population. However, not all strategic goals have been achieved yet, in particular the task of industrialization remains relevant.

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