1994 Fiscal Year Final Research Report Summary
Empirical Analysis on Corporate Restructuring and Performance with Almon-Lag Estimation
| Project/Area Number |
05803013
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| Research Category |
Grant-in-Aid for General Scientific Research (C)
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| Allocation Type | Single-year Grants |
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| Research Field |
Business administration
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| Research Institution | KANTO-GAKUIN UNIVERSITY |
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Principal Investigator |
MIYAMOTO Junjiro KANTO-GAKUIN UNIVERSITY,FACULTY OF ECONOMICS,PROFESSOR, 経済学部, 教授 (90121053)
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| Project Period (FY) |
1993 – 1994
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| Keywords | Corporate Restructuring / Voluntary Restructuring / Business Performance / Time-Lag / Research & Development / Strategic Dicision / Almon-Lag Estimation / Restructuring Charge |
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| Research Abstract |
Corporaterestructuring-decision is required urgently in the age of a longterm economic stagnation just like now. As whether an company is able to survive or not depends on succeeds or failures in a Corporaterestructuring, the desision has "strategic" implications.
Styles of Corporaterestructuring can be devided in two ways according to whether they start up voluntary or not ; on one hand there is (1) "voluntary" or "internal" restructuring and on the other hand there's (2) "external" restructuring. The latter is performed with an approach from some outsiders or by dealings with an external interest-group, eg.through M&A (Merger & Acquisition), liquidation or reorganization with the institutional procedures. Among these ways of corporaterestructuring, we had much more interest especially in "voluntary restructuring". For voluntary-restructuring can be found more often and customerly in Japan.
Comparing Japanese voluntary-restructured companies with the U.S.ones, one peculiar tendency to r
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estructure in our country is to adopt more aggressive policies (eg.to increase liability or to penetrate in new market) than most U.S.companies.
Though G.Donaldson (Harvard Business School) mentioned that most U.S.restructured companies needs to take approximately more than 10 years to accomplish restructuring, we suspected that the term is valid also in Japanese companies. In order to survey the time-lag from starting restructuring-activities to accomlish them, we've taken up research & development (R&D) activities (how much company invested toward research & development ? ) as an proxy for companies to restructure voluntary. According to our research-findings R&D-activities (one company-effort to restructure voluntary) generated effects positively on company performance (esp.on sales) only within 3-5 years, and then they gradually disappeared.
In the near future, some new indexes may be developed to measure the time-lags between any strategical decisions (eg.restructurlng activities) and the effects on business performance. Some change in corporate disclosure (incl.list of "restructuring-charge") may also be hopeful to show us them. Less
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