The Transformation of Zaibatsu to Postwar Corporate Groups-From Hierarchically Integrated Groups to Horizontally Integrated Groups

Research output: Contribution to journalArticle

13 Citations (Scopus)

Abstract

The purpose of this article is to clarify how and why the zaibatsu in prewar Japan were transformed into corporate groups in postwar Japan, and to show what functions the corporate groups played in the initial phase of the transformation period (1949-mid-1950s), by focusing on three large zaibatsu organizations. This paper first briefly sketches the impact of dissolution on the corporate structure of former zaibatsu-line companies. Next, it investigates the forming of keiretsu financing and its functions by considering the accumulation of information concerning borrowers. It then explains the process of forming cross-shareholding in terms of two factors: firms′ attempts to keep autonomous management and to facilitate the increase of paid-in capital on the one hand, and banks′ attempts to monitor them on the other. Finally, this paper provides perspectives on corporate groups′ activities during the high-growth era. J. Japan. Int. Econ., September 1994, 8(3), pp. 293-328. School of Commerce, Waseda University, 6-1 Nishi-waseda 1-Chome, Shinjuku-ku, Tokyo, Japan.

Original languageEnglish
Pages (from-to)293-328
Number of pages36
JournalJournal of the Japanese and International Economies
Volume8
Issue number3
DOIs
Publication statusPublished - 1994 Sep

Fingerprint

Japan
Group
commerce
bank
firm
Corporate groups
Integrated
management
school

ASJC Scopus subject areas

  • Finance
  • Economics and Econometrics

Cite this

@article{47f9ad25fb3d44ca91630bce1ef150c0,
title = "The Transformation of Zaibatsu to Postwar Corporate Groups-From Hierarchically Integrated Groups to Horizontally Integrated Groups",
abstract = "The purpose of this article is to clarify how and why the zaibatsu in prewar Japan were transformed into corporate groups in postwar Japan, and to show what functions the corporate groups played in the initial phase of the transformation period (1949-mid-1950s), by focusing on three large zaibatsu organizations. This paper first briefly sketches the impact of dissolution on the corporate structure of former zaibatsu-line companies. Next, it investigates the forming of keiretsu financing and its functions by considering the accumulation of information concerning borrowers. It then explains the process of forming cross-shareholding in terms of two factors: firms′ attempts to keep autonomous management and to facilitate the increase of paid-in capital on the one hand, and banks′ attempts to monitor them on the other. Finally, this paper provides perspectives on corporate groups′ activities during the high-growth era. J. Japan. Int. Econ., September 1994, 8(3), pp. 293-328. School of Commerce, Waseda University, 6-1 Nishi-waseda 1-Chome, Shinjuku-ku, Tokyo, Japan.",
author = "Hideaki Miyajima",
year = "1994",
month = "9",
doi = "10.1006/jjie.1994.1015",
language = "English",
volume = "8",
pages = "293--328",
journal = "Journal of the Japanese and International Economies",
issn = "0889-1583",
publisher = "Academic Press Inc.",
number = "3",

}

TY - JOUR

T1 - The Transformation of Zaibatsu to Postwar Corporate Groups-From Hierarchically Integrated Groups to Horizontally Integrated Groups

AU - Miyajima, Hideaki

PY - 1994/9

Y1 - 1994/9

N2 - The purpose of this article is to clarify how and why the zaibatsu in prewar Japan were transformed into corporate groups in postwar Japan, and to show what functions the corporate groups played in the initial phase of the transformation period (1949-mid-1950s), by focusing on three large zaibatsu organizations. This paper first briefly sketches the impact of dissolution on the corporate structure of former zaibatsu-line companies. Next, it investigates the forming of keiretsu financing and its functions by considering the accumulation of information concerning borrowers. It then explains the process of forming cross-shareholding in terms of two factors: firms′ attempts to keep autonomous management and to facilitate the increase of paid-in capital on the one hand, and banks′ attempts to monitor them on the other. Finally, this paper provides perspectives on corporate groups′ activities during the high-growth era. J. Japan. Int. Econ., September 1994, 8(3), pp. 293-328. School of Commerce, Waseda University, 6-1 Nishi-waseda 1-Chome, Shinjuku-ku, Tokyo, Japan.

AB - The purpose of this article is to clarify how and why the zaibatsu in prewar Japan were transformed into corporate groups in postwar Japan, and to show what functions the corporate groups played in the initial phase of the transformation period (1949-mid-1950s), by focusing on three large zaibatsu organizations. This paper first briefly sketches the impact of dissolution on the corporate structure of former zaibatsu-line companies. Next, it investigates the forming of keiretsu financing and its functions by considering the accumulation of information concerning borrowers. It then explains the process of forming cross-shareholding in terms of two factors: firms′ attempts to keep autonomous management and to facilitate the increase of paid-in capital on the one hand, and banks′ attempts to monitor them on the other. Finally, this paper provides perspectives on corporate groups′ activities during the high-growth era. J. Japan. Int. Econ., September 1994, 8(3), pp. 293-328. School of Commerce, Waseda University, 6-1 Nishi-waseda 1-Chome, Shinjuku-ku, Tokyo, Japan.

UR - http://www.scopus.com/inward/record.url?scp=0000372370&partnerID=8YFLogxK

UR - http://www.scopus.com/inward/citedby.url?scp=0000372370&partnerID=8YFLogxK

U2 - 10.1006/jjie.1994.1015

DO - 10.1006/jjie.1994.1015

M3 - Article

VL - 8

SP - 293

EP - 328

JO - Journal of the Japanese and International Economies

JF - Journal of the Japanese and International Economies

SN - 0889-1583

IS - 3

ER -