2000 Fiscal Year Final Research Report Summary
Empirical and theoretical Study on international acquisitions, mergers, joint ventures and wholly owned subsidiaries by Japanese firms
| Project/Area Number |
10630104
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| Research Category |
Grant-in-Aid for Scientific Research (C)
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| Allocation Type | Single-year Grants |
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| Section | 一般 |
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| Research Field |
Business administration
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| Research Institution | University of Tsukuba |
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Principal Investigator |
HOSHINO Yasuo Institute of Policy and Planning Sciences, University of Tsukuba, Professor, 社会工学系, 教授 (00096744)
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| Project Period (FY) |
1998 – 2000
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| Keywords | Acquisition / Merger / Joint venture / Wholly-owned / Entry mode / ASEAN4 / US / Latin America |
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| Research Abstract |
We investigate the firm-specific advantages and entry modes of international acquisitions, mergers, joint ventures and wholly-owned subsidiaries by Japanese firms, as decisive factors of business performance for Japanese subsidiaries in Thailand. By ANOVA, profitability for those subsidiaries of half ownership of shares is shown to be higher than cases of majority or minority or wholly ownerships. By multiple regression analysis, size of parent companies has negative, and numbers of subsidiaries and years of operations have positive effects on the profitability of subsidiaries with statistically significant differences. Further, the level of R ＆ D, total years of experiences of subsidiaries, and operating years have positive effects with significances.
Secondly, non-parametric test showed that Japanese subsidiaries in the US (NY, NJ) and 13 Latin American countries have no relationship between entry modes and profitability. Firm-specific advantages and internalization advantages of parent companies have positive influences on the performance of subsidiaries with significances
Thirdly, we analyze entry, divestment and stability of Japanese manufacturing firms in 4 ASEAN countries (Indonesia, Malaysia, Philippine and Thailand). Stability is defined as subsidiaries without divestment and relocation. Wholly-owned affiliates and related national joint ventures with networks are equally stable and they are more stable than other types of joint ventures with significance.
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