Research on Captives and Risk Finance of Japanese Corporation

2014 Fiscal Year Final Research Report

• Project/Area Number: 24530510
• Research Category: Grant-in-Aid for Scientific Research (C)
• Allocation Type: Multi-year Fund
• Section: 一般
• Research Field: Business administration
• Research Institution: Kwansei Gakuin University
• Principal Investigator: MAEDA Yuji 関西学院大学, 経営戦略研究科, 准教授 (70456747)
• Co-Investigator(Kenkyū-buntansha): SUGINO Fumitoshi 専修大学, 商学部, 教授 (50407631) ; METHE David 関西学院大学, 経営戦略研究科, 教授 (50294244)
• Project Period (FY): 2012-04-01 – 2015-03-31
• Keywords: リスクマネジメント / 企業ファイナンス / キャプティブ / リスクファイナンス / 保険

Outline of Final Research Achievements

This research investigates why Japanese firms do not utilize captives for financing risk so much as US or UK firms do. In order to answer to the above research question, we set up three hypothesises and used empirical approach both with micro and macro analysis.
Our research results show that Japanese firms did not necessarily make rational decisison based on efficiency of risk financing by captives but rather decide to keep current good relationship with the insurance companies who are afraid of lowering premium incomes. The insurance companies who have a major stockholder of the firm do not encourage the firm to increase its firm's value by captives but want to keep the current commercial relationship.

Free Research Field

リスクマネジメント