Bending but Not Breaking?: Foreign Investor Pressure and Dividend Payouts by Japanese Firms

Jung, Jiwook; Mun, Eunmi

doi:10.1111/socf.12268

Cited by 6 publications

(5 citation statements)

References 53 publications

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“…Our findings contribute to understanding institutional and organizational change in the era of globalization. Foreign actors have been considered as change agents who may introduce new logics and push local firms to reform traditional practices (Ahmadjian and Robbins, 2005; Desender et al, 2016; Jung and Mun, 2016). We show that pressures from foreign actors are mediated by local actors who define and implement demands and that this mediation, though it results in changes, can also prevent a radical revamp of local institutions.…”

Section: Discussionmentioning

confidence: 99%

Change above the Glass Ceiling: Corporate Social Responsibility and Gender Diversity in Japanese Firms

Mun¹,

Jung

2017

Administrative Science Quarterly

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116

102

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This article examines how local organizations respond to the global norm of corporate social responsibility (CSR), focusing on the case of workplace gender diversity in Japan. Though many global institutional investors have declared their commitment to CSR principles, whether and how their investments actually improve local practices has yet to be examined. We hypothesize that changes implemented by local firms in response to pressure from global institutional investors are shaped by political dynamics among competing professional groups in organizations. Through interviews with CSR managers and consultants in Japan, we find that CSR managers push for gender diversity only in the upper ranks of their organizations. This helps managers limit resistance from human resources managers, who want to maintain the traditional employment system, while still gaining support from investor relations managers, who support changes that are visible to investors. Our findings from panel data analysis further document this change above the glass ceiling. Analyzing more than 800 Japanese firms between 2001 and 2009, we show that both foreign investment and the within-firm influence of CSR and investor relations managers significantly increased the number of women on boards and in managerial positions but did not improve the lot of those in non-managerial or entry-level positions. Our study contributes to research on diffusion and organizational change by illuminating interprofessional politics in the local implementation of global norms.

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Section: Discussionmentioning

confidence: 99%

Change above the Glass Ceiling: Corporate Social Responsibility and Gender Diversity in Japanese Firms

Mun¹,

Jung

2017

Administrative Science Quarterly

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116

102

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“…Although cross‐country studies consistently support the outcome model, single‐country studies yield mixed results. Jung and Mun () find that Japanese firms usually have low dividend payouts, but they rapidly increase their payouts to catch up with U.S. levels because of the pressure from foreign investors. Based on a sample of 501 Belgian firms, the results in Vandemaele and Vancauteren's () study indicate that dividend payouts are low when a family chief executive officer (CEO) leads the business in the presence of a family‐dominated board.…”

Section: Relevant Literature and Hypothesis Developmentmentioning

confidence: 99%

Corporate Governance and Dividend Payout Policy: Beyond Country‐level Governance

Chang

Dutta

Saadi

et al. 2018

J of Financial Research

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We address the mixed empirical findings on how corporate governance affects dividend payout policy by analyzing a large sample of firms from 30 countries. Our results indicate that firms with better firm‐level governance pay more dividends, even after controlling for country‐level governance. However, this relation is pronounced only in countries with low shareholder rights. In addition, we find that when the shareholder rights index is high, firm‐level governance is unrelated to dividend payout in the full sample period. Finally, we show that in high‐shareholder‐rights countries, firm‐level governance changes its role from before to after the 2008–2009 financial crisis.

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“…With good company value, the company will be viewed favorably by potential investors, and vice versa. High company value indicates good company performance [15] [16].…”

Section: Introductionmentioning

confidence: 99%

“…Several previous studies have shown that dividend policy was influenced by several determinants, including liquidity, profitability, indebtedness, tangibility, investment opportunities, market ratio, company's size, company's age, ownership structure [15]. Jung and Mun [16] focus on foreign investors' role in this process of dividend policy. This research use panel data on 2,036 publicly traded Japanese firms from 1990 to 2005.…”

Section: Introductionmentioning

confidence: 99%

“…Meanwhile, dividend policy could be influenced by several factors, company characteristics and macroeconomic conditions. [15] [16] This work aims to analyze the factors that determined the dividend policy of non-financial corporate sectors in the Southeast Asian Countries. This study also has tested the dividend policy mediate the firms' characteristics to the firms' value.…”

Section: Introductionmentioning

confidence: 99%

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Dividend Policy, Firms’ Characteristics and the Impact on the Southeast Asian Firms’ Value

Surwanti¹,

Pamungkas²

2021

Proceedings of the 4th International Conference on Sustainable Innovation 2020-Accounting and Management (ICoSIAMS 2020)

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This research aims to analyze the factors determining the dividend policy of the Southeast Asian non-financial corporate sectors. In this research, the dividend policy of firms in Southeast Asia follows more closely the predictions of Modigliani-Miller theory, that dividend policy does not give impact to the firms' value, but the firms' characteristics include investment decision that supports to the firms' value. This research is verification research that aims to explain the causal relationship between the variables through hypothesis testing. The samples were taken by specifying multiple criteria. The criteria required in this research are: First, these companies are included in the non-financial industries. Second, the companies have been listed on the Capital Market in the selected countries in Southeast Asian Capital Market between 2000-2015. Third, from 2000 to 2015, the companies distributed the cash dividend. The study used panel data of companies listed in the capital market in selected countries in Southeast Asia. This study analyzes the dividend policy of non-financial companies in selected countries in Southeast Asia. This study showed that In Indonesia, the dividend payment was determined by the company's size, while in the Philippines, it was determined by the condition of the company's liquidity. Companies in five countries consistently showed that size was a significant factor affecting firm value. This finding implied that investors would be better off investing in large companies because the value tended to increase and, of course, would impact the welfare of shareholders. This study confirmed that the dividend payment showed a positive impact on the firm value in Malaysia and Philipina. Companies in the Philippines showed that dividends significantly affected firm value. Meanwhile, dividends were significantly influenced by company liquidity. Based on this study's results in the Philippines, dividend policy mediated the effect of liquidity on firm value.

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Bending but Not Breaking?: Foreign Investor Pressure and Dividend Payouts by Japanese Firms

Cited by 6 publications

References 53 publications

Change above the Glass Ceiling: Corporate Social Responsibility and Gender Diversity in Japanese Firms

Change above the Glass Ceiling: Corporate Social Responsibility and Gender Diversity in Japanese Firms

Corporate Governance and Dividend Payout Policy: Beyond Country‐level Governance

Dividend Policy, Firms’ Characteristics and the Impact on the Southeast Asian Firms’ Value

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