How do employees benefit from corporate diversification?

• Project/Area Number: 15K03617
• Research Category: Grant-in-Aid for Scientific Research (C)
• Allocation Type: Multi-year Fund
• Section: 一般
• Research Field: Management
• Research Institution: Keio University
• Principal Investigator: USHIJIMA Tatsuo 慶應義塾大学, 商学部(三田), 教授 (80365014)
• Project Period (FY): 2015-04-01 – 2018-03-31
• Project Status: Completed (Fiscal Year 2017)
• Budget Amount: ¥4,550,000 (Direct Cost: ¥3,500,000、Indirect Cost: ¥1,050,000); Fiscal Year 2017: ¥1,170,000 (Direct Cost: ¥900,000、Indirect Cost: ¥270,000); Fiscal Year 2016: ¥1,300,000 (Direct Cost: ¥1,000,000、Indirect Cost: ¥300,000); Fiscal Year 2015: ¥2,080,000 (Direct Cost: ¥1,600,000、Indirect Cost: ¥480,000)
• Keywords: 多角化 / 内部資本市場 / 給与 / 従業員交渉力 / 資本構造 / 従業員給与 / 労働組合 / 組織能力 / 財務政策 / 役員報酬 / コインシュランス効果 / 経営者報酬 / 資本構成

Outline of Final Research Achievements

This study investigates how corporate diversification across industries affects employees with particular attention to the effect on wages. Coinsurance generated by internal capital markets likely increases the financial stability of diversified firms. We posit that the effect of increased job security on wages is qualitatively contingent upon employees’ bargaining power. Consistent with this prediction, an analysis of listed Japanese firms over the period from 2001 to 2010 reveals that the effect of diversification on wages is significantly positive for firms with unionized employees and significantly negative for firms with nonunionized employees. This is a novel result unreported in the literature.

Research Products

• [Presentation] Are Smaller (Larger) Corporate Headquarters Better? (2017)
  • Author(s): Tatsuo Ushijima
  • Organizer: Association of Japanese Business Studies
  • Int'l Joint Research
• [Presentation] Corporate Diversification, Employee Barganing Power, and Wages (2017)
  • Author(s): Tatsuo Ushijima
  • Organizer: International Atlantic Economic Conference
  • Int'l Joint Research
• [Presentation] The effects of diverfication on employee and executive pays (2016)
  • Author(s): Tatsuo Ushijima
  • Organizer: World Finance Conference
  • Place of Presentation: New York (United States)
  • Year and Date: 2016-07-29
  • Int'l Joint Research
• [Presentation] The effects of diverfication on employee and executive pays (2016)
  • Author(s): Tatsuo Ushijima
  • Organizer: Asian Finance Association
  • Place of Presentation: Bangkok (Thailand)
  • Year and Date: 2016-06-26
  • Int'l Joint Research
• [Presentation] The effects of diverfication on employee and executive pays (2016)
  • Author(s): Tatsuo Ushijima
  • Organizer: Western Economic Assoiciation
  • Place of Presentation: Singapore
  • Year and Date: 2016-01-07
  • Int'l Joint Research
• [Presentation] The Effects of Corporate Diversification on Employee and Executive Pays (2016)
  • Author(s): Tatsuo Ushijima
  • Organizer: Asian Finance Association Annual Meeting
  • Place of Presentation: バンコク（タイ）
  • Int'l Joint Research
• [Presentation] The Effects of Corporate Diversification on Employee and Executive Pays (2016)
  • Author(s): Tatsuo Ushijima
  • Organizer: World Finance Conference
  • Place of Presentation: ニューヨーク（米国）
  • Int'l Joint Research
• [Presentation] Diversification, organization, and value of the firm (2015)
  • Author(s): Tatsuo Ushijima
  • Organizer: Western Economic Assoiciation
  • Place of Presentation: Honolulu (United States)
  • Year and Date: 2015-06-28
  • Int'l Joint Research
• [Book] 企業統治と成長戦略 (2017)
  • Author(s): 牛島辰男（宮島英昭編著）
  • Total Pages: 438
  • Publisher: 東洋経済新報社