Japan's holding company puzzle

• Project/Area Number: 24530421
• Research Category: Grant-in-Aid for Scientific Research (C)
• Allocation Type: Multi-year Fund
• Section: 一般
• Research Field: Business administration
• Research Institution: Aoyama Gakuin University
• Principal Investigator: USHIJIMA Tatsuo 青山学院大学, 国際マネジメント研究科, 教授 (80365014)
• Project Period (FY): 2012-04-01 – 2015-03-31
• Project Status: Completed (Fiscal Year 2014)
• Budget Amount: ¥5,070,000 (Direct Cost: ¥3,900,000、Indirect Cost: ¥1,170,000); Fiscal Year 2014: ¥1,690,000 (Direct Cost: ¥1,300,000、Indirect Cost: ¥390,000); Fiscal Year 2013: ¥1,690,000 (Direct Cost: ¥1,300,000、Indirect Cost: ¥390,000); Fiscal Year 2012: ¥1,690,000 (Direct Cost: ¥1,300,000、Indirect Cost: ¥390,000)
• Keywords: 持株会社 / 企業価値 / 分社化 / 分権化 / 多角化 / 内部資本市場

Outline of Final Research Achievements

One of major changes in the organization of Japanese firms in the present century is that firms with a holding-company structure increased substantially. This study investigates the causes and consequences of this change, with particular attention to the effect on firm value. It is found that decentralization through the parent-subsidiary structure is a prime motive for the adoption of the holding-company structure. It is also found that the holding-company structure on average fails to increase firm value. Firms that have adopted a holding-company structure on average lose 10% in value relative to comparable firms that have not adopted the structure.

Research Products

• [Journal Article] Diversification, Organization, and Value of the Firm (2015)
  • Author(s): Tatsuo Ushijima
  • Journal Title: RIETI Discussion Paper Series Volume: 15-E-019 Pages: 1-47
  • Open Access / Acknowledgement Compliant
• [Journal Article] 多角化ディスカウントと企業ガバナンス (2015)
  • Author(s): 牛島辰男
  • Journal Title: フィナンシャル・レビュー Volume: 121 Pages: 69-90
  • Open Access / Acknowledgement Compliant
• [Presentation] Diversification, Organization, and Value of the Firm (2014)
  • Author(s): Tatsuo Ushijima
  • Organizer: World Banking & Finance Symposium
  • Place of Presentation: Singapore
  • Year and Date: 2014-12-12 – 2014-12-13
• [Presentation] Diversification, Organization, and Value of the Firm (2014)
  • Author(s): Tatsuo Ushijima
  • Organizer: Asian Finance Association Annual Meeting
  • Place of Presentation: Bali, Indonesia
  • Year and Date: 2014-06-24 – 2014-06-27
• [Presentation] Diversification, Organization, and Value of the Firm (2014)
  • Author(s): 牛島辰男
  • Organizer: コーポレートガバナンス研究会
  • Place of Presentation: 経済産業研究所
• [Presentation] Diversification, Organization, and Value of the Firm (2014)
  • Author(s): Tatsuo Ushijima
  • Organizer: Asian Finance Association
  • Place of Presentation: Indonesia
• [Presentation] Diversification, Organization, and Value of the Firm (2013)
  • Author(s): 牛島辰男
  • Organizer: Monetary Economics Workshop
  • Place of Presentation: 神戸大学
  • Invited
• [Presentation] Subsidiary takeovers in Japan: Economic roles and valuation effects (2012)
  • Author(s): 牛島辰男
  • Organizer: 日本経済学会
  • Place of Presentation: 北海道大学
• [Presentation] Subsidiary takeovers in Japan: Economic roles and valuation effects (2012)
  • Author(s): 牛島辰男
  • Organizer: Asian Finance Association
  • Place of Presentation: 台湾（台北）