TY  - JOUR
AU  - Kaplan,Steven
AU  - Minton,Bernadette
TI  - 'Outside' Intervention in Japanese Companies:  Its Determinants and Implications for Mangers
JF  - National Bureau of Economic Research Working Paper Series
VL  - No. 4276
PY  - 1994
Y2  - October 1994
UR  - http://www.nber.org/papers/w4276
L1  - http://www.nber.org/papers/w4276.pdf
N1  - Author contact info:
Steven N. Kaplan
Booth School of Business
The University of Chicago
5807 South Woodlawn Avenue
Chicago, IL 60637
Tel: 773/702-4513
Fax: 773/702-0458
E-Mail: steven.kaplan@chicagobooth.edu

Bernadette Minton
Finance Department
Fisher College of Business
700 Fisher Hall
2100 Neil Avenue
Columbus, OH 43210-1144
Tel: 614/292-5026
Fax: 614/292-2418
E-Mail: minton_15@fisher.osu.edu
AB  - This paper estimates the determinants of appointments of 'outsiders' -- directors previously employed by banks or other non-financial firms -- to the boards of large (non-financial) Japanese companies. Appointments of both types of 'outsiders' increase with poor stock performance; those of bank outsiders also increase with negative current income. Appointments of bank outsiders are related to firm debt levels; those of corporate outsiders, to shareholder concentration and group affiliation, Both types of outsider appointments appear to be disciplinary -- top executive turnover increase substantially in the same year. Additional evidence on subsequent firm performance suggests that "bank" directors are appointed in financially distressed or contracting firms, while "corporate" directors are appointed in firms with temporary problems.
ER  -