Productivity and operating performance of Japanese merging firms: Keiretsu-related and independent mergers

Tsung-ming Yeh, Yasuo Hoshino

Research output: Contribution to journalArticle

31 Citations (Scopus)

Abstract

This paper aims to investigate the effects of mergers on the firms’ operating performance and the Keiretsu’s roles in the performance variation. This is motivated by the contradicting arguments whether Japanese Keiretsu can effectively control agency conflicts and increase firm efficiency. Examining 86 Japanese corporate mergers completed from 1970 to 1994, we found that: (1) Japanese mergers failed to improve the firm efficiency, and even caused deterioration in the firms’ operating performances; (2) the Keiretsu relationship was particular detrimental to the merging firms’ post-merger performance.
Original languageEnglish
JournalJapan and the World Economy
Volume14
Issue number3
DOIs
Publication statusPublished - 2002

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