Internal capital market and the growth and survival of Japanese plants in the United States

Tatsuo Ushijima

doi:10.1016/j.jjie.2003.12.004

Internal capital market and the growth and survival of Japanese plants in the United States

Tatsuo Ushijima

Research output: Contribution to journal › Article › peer-review

9 Citations (Scopus)

Abstract

This article examines the growth and survival of foreign plants based on a cross-section of Japanese plants in the United States. Results show that plant turnovers are significantly related to plant age and size in a manner highly consistent with the Bayesian learning model of firm dynamics (e.g. Jovanovic [Econometrica 50 (1982) 649]). They also indicate that financial conditions prevailing at the Japanese parent affect plant dynamics importantly, suggesting the working of internal capital markets across the Pacific. Results, however, are ambiguous with regard to the efficiency of internal capital allocation.

Original language	English
Pages (from-to)	366-385
Number of pages	20
Journal	Journal of The Japanese and International Economies
Volume	19
Issue number	3
DOIs	https://doi.org/10.1016/j.jjie.2003.12.004
Publication status	Published - 2005 Sept
Externally published	Yes

Keywords

Firm turnover
Foreign direct investment
Internal capital market
Multinational corporation

ASJC Scopus subject areas

Finance
Economics and Econometrics
Political Science and International Relations

UN SDGs

This output contributes to the following UN Sustainable Development Goals (SDGs)

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10.1016/j.jjie.2003.12.004

Cite this

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title = "Internal capital market and the growth and survival of Japanese plants in the United States",

abstract = "This article examines the growth and survival of foreign plants based on a cross-section of Japanese plants in the United States. Results show that plant turnovers are significantly related to plant age and size in a manner highly consistent with the Bayesian learning model of firm dynamics (e.g. Jovanovic [Econometrica 50 (1982) 649]). They also indicate that financial conditions prevailing at the Japanese parent affect plant dynamics importantly, suggesting the working of internal capital markets across the Pacific. Results, however, are ambiguous with regard to the efficiency of internal capital allocation.",

keywords = "Firm turnover, Foreign direct investment, Internal capital market, Multinational corporation",

author = "Tatsuo Ushijima",

note = "Funding Information: I am grateful to Marvin Lieberman, Olav Sorenson, Mariko Sakakibara, Takeo Hoshi (editor), and an anonymous referee for their helpful comments. Remaining errors are mine. Financial supports from the doctoral program and Center for International Business Education and Research at Anderson Graduate School of Management at UCLA are highly appreciated. ",

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AU - Ushijima, Tatsuo

N1 - Funding Information: I am grateful to Marvin Lieberman, Olav Sorenson, Mariko Sakakibara, Takeo Hoshi (editor), and an anonymous referee for their helpful comments. Remaining errors are mine. Financial supports from the doctoral program and Center for International Business Education and Research at Anderson Graduate School of Management at UCLA are highly appreciated.

PY - 2005/9

Y1 - 2005/9

N2 - This article examines the growth and survival of foreign plants based on a cross-section of Japanese plants in the United States. Results show that plant turnovers are significantly related to plant age and size in a manner highly consistent with the Bayesian learning model of firm dynamics (e.g. Jovanovic [Econometrica 50 (1982) 649]). They also indicate that financial conditions prevailing at the Japanese parent affect plant dynamics importantly, suggesting the working of internal capital markets across the Pacific. Results, however, are ambiguous with regard to the efficiency of internal capital allocation.

AB - This article examines the growth and survival of foreign plants based on a cross-section of Japanese plants in the United States. Results show that plant turnovers are significantly related to plant age and size in a manner highly consistent with the Bayesian learning model of firm dynamics (e.g. Jovanovic [Econometrica 50 (1982) 649]). They also indicate that financial conditions prevailing at the Japanese parent affect plant dynamics importantly, suggesting the working of internal capital markets across the Pacific. Results, however, are ambiguous with regard to the efficiency of internal capital allocation.

KW - Firm turnover

KW - Foreign direct investment

KW - Internal capital market

KW - Multinational corporation

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DO - 10.1016/j.jjie.2003.12.004

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JO - Journal of The Japanese and International Economies

JF - Journal of The Japanese and International Economies

IS - 3

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Internal capital market and the growth and survival of Japanese plants in the United States

Abstract

Keywords

ASJC Scopus subject areas

UN SDGs

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