How do employees benefit from corporate diversification?

2017 Fiscal Year Final Research Report

• 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
• Keywords: 多角化 / 内部資本市場 / 給与 / 従業員交渉力 / 資本構造

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.

Free Research Field

企業戦略、経営財務