TY  - JOUR
AU  - Kimura,Fukunari
AU  - Fujii,Takamune
TI  - Globalizing Activities and the Rate of Survival: Panel Data Analysis on Japanese Firms
JF  - National Bureau of Economic Research Working Paper Series
VL  - No. 10067
PY  - 2003
Y2  - November 2003
UR  - http://www.nber.org/papers/w10067
L1  - http://www.nber.org/papers/w10067.pdf
N1  - Author contact info:
Fukunari Kimura
Faculty of Economics
Keio University
JAPAN
E-Mail: fkimura@econ.keio.ac.jp

Takamune Fujii
Aichi University
370 Kurozasa, Miyoshi
Nishikamo-gun
Aichi 470-0296, Japan
Tel: 81-561-36-1111
E-Mail: tkfujii@vega.aichi-u.ac.jp
AB  - This paper conducts a Cox-type survival analysis of Japanese corporate firms using census-coverage data collected by METI. A study of exiting firms confirmed several characteristics of Japanese firms in the 1990s. First, excessive internalization in the corporate structure and activities is harmful to corporate survival. Having too many establishments and affiliates weakens corporate performance. Efficient concentration on core competences increases the probability of survival. Second, global commitment helps Japanese firms be more competitive and more likely to survive. However, the channels of a firm's global commitment must be carefully selected. Small firms can benefit from exporting activities, though having foreign affiliates or conducting foreign outsourcing might aggravate their performance. Large firms, on the other hand, can conduct foreign direct investment and foreign outsourcing to possibly enhance the probability of their survival. Third, while corporate performance affects the choice of exits for affiliate firms, it does not affect the survival/exit of independent firms; suggesting the possible malfunctioning of the market mechanisms in the exits of independent firms. Fourth, we do not find any statistically significant evidence that firms with foreign shareholders are more likely to exit; there is little evidence of foot-loose behavior among foreign companies.
ER  -