Next Article in Journal
Enablers of Entrepreneurial Activity across the European Union—An Analysis Using GEM Individual Data
Previous Article in Journal
Community-Driven Sports Events as a Vehicle for Cultural Sustainability within the Context of Forced Migration: Lessons from the Amsterdam Futsal Tournament
Open AccessArticle

Institutional Ownership and Firm Performance under Stakeholder-Oriented Corporate Governance

Graduate School of Economics, Nagoya City University; Nagoya 4678501, Japan
*
Author to whom correspondence should be addressed.
Sustainability 2020, 12(3), 1021; https://doi.org/10.3390/su12031021
Received: 17 December 2019 / Revised: 25 January 2020 / Accepted: 28 January 2020 / Published: 31 January 2020
(This article belongs to the Section Economic, Business and Management Aspects of Sustainability)
This study aimed to reveal the role of institutional investors with shareholder-oriented scopes in a stakeholder-oriented economy such as Japan. With financial globalization, the increasing number of institutional shareholders in Japanese corporations enables us to investigate whether their shareholder-oriented perspectives are conducive to taking on effective monitoring roles under stakeholder-oriented corporate governance. This study’s sample included large listed firms of the TOPIX 500 in Japan during 2010-2016. Using 2924 firm-year observations, the effect of institutional investors on firm performance was analyzed to test the role of institutional investors in stakeholder-oriented corporate governance. Our study showed that the monitoring role of institutional shareholders, or foreign shareholders, functions effectively in Japanese corporations. In addition, we showed that the monitoring roles of these are expected to strengthen firms through higher growth opportunities. These results implied that institutional shareholders contribute to enhancing sustainable firm performance and constructing sustainable corporate governance mechanisms in a stakeholder-oriented system. View Full-Text
Keywords: Agency Theory; institutional shareholder; foreign shareholder; stakeholder-oriented corporate governance Agency Theory; institutional shareholder; foreign shareholder; stakeholder-oriented corporate governance
MDPI and ACS Style

Sakawa, H.; Watanabel, N. Institutional Ownership and Firm Performance under Stakeholder-Oriented Corporate Governance. Sustainability 2020, 12, 1021.

Show more citation formats Show less citations formats
Note that from the first issue of 2016, MDPI journals use article numbers instead of page numbers. See further details here.

Article Access Map by Country/Region

1
Back to TopTop