Search Results (46)

Based on firm-level data of Japanese listed companies for the period of 2013–2022, this study conducts an empirical analysis to investigate how the issuance of green bonds influences corporate environmental and financial performance. The results show that the green bond issuance demonstrates a reduction in corporate greenhouse gas emission intensity and energy consumption intensity in the long term. Moreover, the issuance of green bonds enhances the financial performance of firms in the long run. However, the positive effect of green bond issuance on corporate environmental and financial performance is significant only among firms that have set specific quantitative environmental targets. In addition, for manufacturing and transportation green bond issuers that have set specific quantitative environmental targets, the improvement in environmental performance is evident in both the long and short term. Full article

Demands for companies to comply with environmental, social, and governance (ESG) requirements are growing, and companies are also expected to play a role in promoting sustainable development. For companies to achieve sustainable growth while addressing ESG, it must be understood whether ESG activities promote improved corporate financial performance. We conducted a five-year panel data analysis of 635 Japanese firms from FY 2019 to FY 2023, using the PBR, PER, and ROE financial indicators as the dependent variables and CSR ratings in the human resource utilization (HR), environment (E), governance (G), and social (S) categories as the independent variables. The results revealed that, depending on the combination of ESG field and financial indicators, companies with advanced ESG initiatives had greater financial performance, with some cases showing a nonlinear relationship; differences in the results between manufacturing and nonmanufacturing industries were also observed. For companies to effectively advance ESG activities, it is important to clarify the objectives and results for each ESG category. For policymakers to consider measures to encourage companies’ ESG activities, it is also important to design finely tuned regulations and incentives according to the ESG category and industry characteristics. Full article

This study examines the impact of cost stickiness on research and development (R&D) investment and corporate performance in Japanese firms. Additionally, it investigates the moderating effect of managerial overconfidence and financial slack. To do so, we analysed a sample of 4877 observations from Japanese firms listed on the Tokyo Stock Exchange between 2014 and 2020. The results show that cost stickiness generally promotes R&D investment while negatively affecting corporate performance. Further, although managerial overconfidence does not moderate the relationship between cost stickiness and R&D investment, it weakens the negative effect of cost stickiness on corporate performance. Meanwhile, financial slack strengthens the positive impact of cost stickiness on R&D investment, but it does not moderate the relationship between cost stickiness and corporate performance. These findings provide strategic insights into resource allocation behaviour in driving innovation and influencing corporate outcomes in the Japanese market context. Full article

The choice between domestic and foreign production is one of the most important decisions not only for international business management but also for economic diplomacy and industrial policy. The reality is not a binary choice, but some firms use both. Why do companies maintain labour-intensive production in developed countries in the globalised world? To understand business challenges and strategies, this study examines small and medium-sized enterprises (SMEs) in the garment factory agglomeration in the North (Kenpoku) area of Iwate Prefecture, Japan. The in-depth case study, with a special focus on the six competitiveness factors of Japanese apparel firms, recognises that the ‘Made in Japan’ branding strategy is one of the effective ways to attract Japanese customers. This marketing strategy may motivate some firms to consider international market development. However, most Japanese SME apparel manufacturers play the role of original equipment manufacturer (OEM) for specific domestic market-oriented apparel companies. To meet customers’ strict delivery requirements, our case SMEs are developing multi-skilled workers to cope with high-mix small-lot production and fast delivery simultaneously. This management innovation is essential for building long-term business relationships and trust with corporate apparel buyers and surviving competition from products made in China and other developing countries. Full article

The article presents the results of research on the resilience of companies using management concepts such as Lean Management, Agile, and Six Sigma to the crises that companies have had to face in recent years: the COVID-19 pandemic, rising energy prices, and the war in Ukraine. The implementation of these management concepts should lead to process improvements and a reduction in the consumption of production resources, including energy. The aim of the study was to determine how these crises have affected the efficiency of companies and to determine whether the solutions used so far are sufficient or require modification. The authors used three research methods. Firstly, they analyzed the literature—scientific publications, studies, and expert reports. Secondly, they analyzed the financial results (net profits and share of Costs of Goods Sold in the value of Revenues) in the period before (2016–2019) and after the outbreak of the COVID-19 pandemic (2020–2023) of companies using Lean Management, Agile, and Six Sigma strategies and their combinations. To compare the effectiveness of these management methods, they also analyzed the financial results of international corporations and Polish companies. Third, they conducted a survey among Polish companies applying the Lean Management concept. The results of this research show that the crises of recent years, even if they caused a deterioration in financial performance, were short-lived as companies were able to adapt to the new conditions. Japanese companies using Lean Management increased their profits by an average of 55.56% between 2020 and 2023, and “Lean” American organizations even more (71.64%). Polish companies have been steadily increasing their profits for years (134.14% before the pandemic and 143.27% after the outbreak). The share of COGS will remain at a similar (high) level for many years to come. There are no significant increases in these costs due to crises in the companies’ environment (e.g., increase in energy prices), and, on the other hand, there is no tendency for them to decrease in a large proportion of companies. In the years 2020–2023, the largest decreases in the share of these costs occurred in companies combining Lean and Six Sigma (−11.85%). In companies that use the Agile strategy, there was an increase of 8.05%. However, these are average data, and the analysis of the results of companies from individual groups leads to the conclusion that it is not only the management concept that is important, but also how it is implemented in a given company. In addition, streamlining processes only by eliminating waste is not enough these days. It is necessary to use modern technologies (digital technologies, Industry 4.0). Increasing the efficiency of production or logistics processes leads to a reduction in energy consumption and external costs. However, new, specialized solutions are needed. The issue of energy efficiency is indeed gaining more and more importance in companies and is included in management concepts, e.g., in Lean Management. Full article

Drug discovery and development require significant costs and time, making investment acquisition crucial. However, there are few biopharmaceutical startups with high valuations in Japan. Unlike other countries, entrepreneurship in Japan is relatively inactive, and startups have a minimal presence in the drug-discovery field. Instead, in Japan’s innovation system, research and development (R&D) has been led by large incumbent companies, which are believed to have a wealth of promising assets and talent. This study tested the hypothesis that biopharmaceutical startups leveraging these assets and talent might be more attractive to investors by regression analysis using a dataset of Japanese unlisted biopharmaceutical startups. The results demonstrated that Japanese biopharmaceutical startups showed significantly higher valuations and total funding amounts if they were corporate spin-offs (CSOs). Additionally, they achieved significantly higher valuations and total funding amounts if their R&D lead persons had corporate backgrounds. These findings suggest that in Japan’s innovation system, which is centered on large companies, CSOs and startups leveraging R&D talent with corporate experience may be more appealing to investors. Full article

The Sustainable Development Goals (SDGs) have become a guiding framework for the public and private sectors. For companies, the SDGs offer a way to create value for investors while addressing local and global issues. Japan has embraced the SDGs to demonstrate its commitment to sustainable development but, despite its high ranking, faces challenges in improving its performance. This study aims to investigate how Japanese companies are considering the SDGs in their corporate governance. Using a database of corporate social responsibility activities in 1630 companies, the degree to which the 17 SDGs are being integrated was examined across 33 industrial sectors. Next, hierarchical clustering on principal components was applied and identified four distinct patterns in the integration of the SDGs, ranging from almost no consideration of the SDGs to the nearly full consideration of all 17 goals, with two transitionary patterns in between. Some sectors strongly tended to belong to one pattern of SDG integration, while other sectors exhibited more variability. While the direct implications of this study may be limited to the context of Japan, the methodologies and outcomes point to future research that could lead to a better understanding of how the SDGs are being approached by the private sector. Full article

We examine the impact of corporate governance and personal networks on corporate fraud in Japanese companies, using panel logit and Cox proportional hazard models to analyze fraud occurrence and detection. This study focuses on the effects of Japan’s recent corporate governance reform and explores the unique influence of personal networks. Our key findings indicate that recent changes in corporate governance in Japan have been effective in preventing the occurrence of fraud and accelerating its detection. Additionally, stronger personal networks among board members help prevent fraud concealment, highlighting cultural differences in the effectiveness of personal networks in corporate governance compared to findings from Europe and the US. Full article

Learning and using technology in the workplace are essential for a company’s commitment to the sustainable development of its resources. Finding competent engineers who can handle information communication technologies (ICTs) is a challenge for companies. Currently, however, the ability to use these technologies is limited to technicians with specialized training, and not everyone can engage in development. Therefore, it is safe to conclude that equity in the use of technology has not yet been realized. This study aims to analyze, based on actual cases, the necessary conditions and mechanisms for people with diverse experiences and circumstances, not limited to engineers, to participate in ICT development to address human resource diversity. The use of technology such as low-code platforms (LCPs) that have recently emerged on the market has shown that nonprofessional engineers without programming training can participate in development projects. This research will be useful to managers in advancing Diversity, Equity, and Inclusion (DEI) strategies in their workplaces and contribute to organizational research regarding new trends in technology use by individuals: low codability. The findings of this study are of significant relevance to the Sustainable Development Goals (SDGs) of decent work and economic growth, as well as gender equality. Full article

This article describes two distinct periods in the migratory flow of the Japanese to Mexico under the framework of settler colonialism. A historical review revealed that some agriculture colonies were formed by the Japanese in the south of Mexico with the goal to settle those lands. This was possible thanks to inter-governmental agreements in the early 1900s. Recently, the migration flow of the Japanese to Mexico is due to corporate mobility, mainly in the Bajío region in Mexico where many Japanese automakers are located. The implications of both types of immigration in both regions are described as part of this research. This research contributes to the understanding of migration flows and mobility patterns of the Japanese in Mexico. Full article

This study aimed to investigate the relationship between the childcare balancing policy and women’s fertility intention in Japanese corporations. This paper constructed two logistic regression models based on data from the 2010 Japanese Life Course Survey of Youth to analyze the correlation between childcare balancing policies and women’s fertility intentions. The binary logistic regression method was used. The results showed that women’s fertility intention is negatively associated with the childcare balancing policy in Japanese corporations. This may be because the research object already had a child or children. The results indicate that the fertility intention of women who had a child or children was lower than those without children. This paper discovered that regular employees had higher fertility intentions than non-regular staff. This paper provides policymakers with valuable insights on establishing effective childcare policies to enhance women’s fertility intentions. Full article

This article explores the first-time choreographic collaboration between Eiko Otake, a renowned Japanese dance artist, and Wen Hui, a celebrated Chinese choreographer and filmmaker, which took place in mainland China in January of 2020. The outbreak of the coronavirus in Wuhan compelled Otake to return to the US prematurely, and the subsequent global pandemic led the two artists to continue working together through the computer screen. Constructed from daily footage of Wen and Otake moving together, conversing about their personal histories and choreographic works, and visiting the Nanjing Massacre Memorial, the resulting documentary film No Rule Is Our Rule (2023, 74 min) offers a poignant portrayal of their creative process, which places utmost importance on honesty and openness. Through an in-depth analysis of their artistic exploration presented through the film, the article examines how their collaborative endeavor which prioritizes corporeal interaction and unfiltered dialogues can be conceived as a form of mediated social choreography. I argue that their embodied methodology, grounded in the interweaving of personal and social memories, points to the potential for collective healing from the tension and trauma in Sino-Japanese history and promotes collective imagining through intercultural dialogues. Full article

Gender diversity is increasingly recognized as a critical element in corporate management. However, existing research on its impact on firm performance demonstrates inconsistency in a global context. This study employs 1990 publicly listed Japanese companies from 2006 to 2023 and examines the effect of board gender diversity on firm performance in Japan. Findings from the fixed-effects regression model revealed a significant negative impact of board gender diversity on firm performance. This adverse correlation is more pronounced in smaller firms, those with greater leverage and reduced institutional ownership, and regulated and consumer-focused industries, particularly pre-COVID-19. The detrimental impact of board gender diversity on firm performance is transmitted via corporate social responsibility and firm innovation instead of board independence or CEO duality. Notably, the two-stage least squares estimation addresses potential endogeneity, employing an equal opportunity policy as an instrumental variable. Moreover, the robustness of our results is affirmed via the substitution of return on equity for return on assets as an indicator of firm performance. Lastly, our analysis does not reveal a U-shaped nonlinear relationship between board gender diversity and corporate performance. As Japan progressively promotes women’s participation in corporate governance, this research bears significant implications for corporate leaders, investors, and policymakers in Japan. Full article

Fully understanding the local populace’s awareness and reactions to corporate social responsibility (CSR) with a strong emphasis on sustainability is crucial for multinational enterprises (MNEs) to design and implement effective localized CSR strategies. This study centers on the home appliance industry and utilizes semi-structured interviews and questionnaire surveys as the research methods to construct and validate a model called “Attribution–Perception–Satisfaction–Loyalty (APSL)” that visualizes consumer responses to CSR information, particularly in the context of sustainability. We further explore the distinctions in the mechanism between Chinese and Japanese consumers, considering cultural, economic, and institutional aspects related to sustainability. The findings reveal that beyond the perceptions related to value-driven motivations, there are pronounced differences between Chinese and Japanese consumers in stakeholder-driven, self-interest-driven, and strategy-driven motivations, which can impact sustainability initiatives. Notably, Japanese consumers are more significantly affected by the impact of CSR on their satisfaction and loyalty. This study not only enriches and expands the theoretical framework of CSR and consumer responses to CSR but also offers insights and recommendations for MNEs in China and Japan to help overcome the self-reference criterion and implement local CSR marketing strategies with a strong emphasis on sustainability. Full article

This study demonstrates the mechanisms by which the pragmatic characteristics of legitimacy influence the promotion of corporate social responsibility activities, focusing on firms and investors. We hypothesize that the more aggressive a firm is in its environmental protection efforts, the higher the reduction in investment risk from its environmental performance. Multiple regression analysis was performed for Japanese chemical-related industries from 2017 to 2019. The results revealed that firms that balance environmental performance with business profits should invest in environmental protection activities and improve their environmental performance without touting profitability. The findings reveal the need to incorporate a profitability perspective when considering the relationship between environmental protection activities and investor perceptions. Full article