Does the natural selection mechanism still work in severe recessions?

Nishimura, Kiyohiko G.; Nakajima, Takanobu; Kiyota, Kozo

doi:10.1016/j.jebo.2004.03.008

Cited by 119 publications

(79 citation statements)

References 37 publications

Supporting

Mentioning

Contrasting

Order By: Relevance

“…The TFP is calculated in a nonparametric manner by the index number formula that uses a hypothetical representative company as reference. 7 This calculation of TFP is frequently employed in productivity studies using data from the Basic Survey of Japanese Business Structure and Activities (e.g., Nishimura et al, 2005;Fukao and Kwon, 2006;Morikawa, 2010Morikawa, , 2013.…”

Section: Methodsmentioning

confidence: 99%

What Types of Companies Have Female and Foreign Directors?

Morikawa

2014

SSRN Journal

View full text Add to dashboard Cite

This paper analyzes the determinants of the presence and the number of female and foreign directors among Japanese companies. First, listed and long-established companies, subsidiaries, and unionized companies tend not to have female directors. On the other hand, owner-managed companies are likely to have female directors and chief executive officers (CEOs). Company size and foreign shareholdings do not have significant relationships with the presence of female directors. Second, while some past studies in the United States and European countries find evidence of "tokenism," whereby female-led companies do not appoint additional females as directors, we do not find such evidence among Japanese companies. Third, while foreign-owned companies and companies engaged in overseas activities tend to have foreign directors, other company characteristics, such as size and listing status, do not have systematic relationships with the presence of foreign directors.

show abstract

Section: Methodsmentioning

confidence: 99%

What Types of Companies Have Female and Foreign Directors?

Morikawa

2014

SSRN Journal

View full text Add to dashboard Cite

show abstract

“…Basically, according to the concept of natural selection embedded in 'economic Darwinism', exogenous shocks will force out inefficient firms and free available resources for the remaining more productive ones, improving the efficiency of resource allocation (see, e.g., Nishimura et al 2005). Unproductive firms are more vulnerable to negative external shocks since shocks can decrease the firms' performance below a critical threshold that is known as 'the destruction threshold' (see Barlevy 2002).…”

Section: Literature Reviewmentioning

confidence: 99%

“…The survival of the fittest firms related to changes in the business environment caused by exogenous shocks, such as recessions and natural disasters, may be explained using economic Darwinism (see, e.g., Nishimura et al 2005). The natural selection mechanism of Darwinism leads to efficient resource allocation: firms with low performance are forced out of the market while productive firms survive.…”

Section: Introductionmentioning

confidence: 99%

Shaking Up the Firm Survival: Evidence from Yogyakarta (Indonesia)

2018

View full text Add to dashboard Cite

Abstract:The survival of firms under changes in the business environment caused by exogenous shocks may be explained using economic Darwinism. Exogenous shocks can cause 'cleansing effects' as shocks clean out unproductive firms so that available resources are allocated to the remaining more productive firms. However, shocks may also force out young firms that are potentially highly productive in the future, which will lower the average productivity of industries. This is known as the 'scarring effect' of shocks. Therefore, the overall impact of exogenous shocks on the allocation of resources depends on the relative magnitude of cleansing and scarring effects. This paper investigates this natural selection mechanism after the Yogyakarta earthquake in 2006. The study uses data on medium-sized and large manufacturing firms in the Yogyakarta province collected by the Indonesian Statistical Agency. The main finding of this paper is that firms that had higher productivity prior to the earthquake in 2006 were more likely to survive after the earthquake, which suggests the existence of a natural selection mechanism causing cleansing effects. There is no evidence of scarring effects of the earthquake on the new entrants.

show abstract

“…• Exit of innovative businesses can result if external financing constraints exist (Barlevy, 2002;Nishimura et al, 2005; Hallward-Driemeier and Rijkers, 2011).…”

Section: Entrepreneurship/firm Dynamicsmentioning

confidence: 99%

Innovation in the crisis and beyond

2012

View full text Add to dashboard Cite

Innovation in the crisis and beyond This chapter provides an overview of the impact of the global financial and public debt crises on innovation. The global financial crisis negatively affected business innovation and R&D. Enterprise creation seems not to have recovered and business bankruptcies have increased significantly. The chapter shows substantial differences in performance across countries, sectors, businesses and types of innovation. Future trends in innovation in most developed countries are uncertain. In particular, long-term damages to innovation systems occur when long-term skilled unemployment rises and public support of innovation is weakened. Finally, many countries have implemented policies to respond to the crisis that include innovation, although budgetary constraints have put pressure on governmental support of innovation.The statistical data for Israel are supplied by and under the responsibility of the relevant Israeli authorities. The use of such data by the OECD is without prejudice to the status of the Golan Heights, East Jerusalem and Israeli settlements in the West Bank under the terms of international law. 2. Emerging countries in Asia, including Korea and China, have used the opportunity to demonstrate their strengths in innovation. They continue to outperform developed countries, relying on structural strengths that helped them face the crisis. The crisis has also rewarded large high-technology innovating firms; markets for these innovations will continue to be strong.3. The crisis revealed the pre-crisis weaknesses of some countries (e.g. Greece and some southern and eastern European countries), sectors (e.g. the automobile sector) and types of innovations (e.g. financial innovations). Future prospects for innovation in these countries and industries will greatly depend on broader economic restructuring, which does not place innovation at the top of the immediate policy agenda although innovation will have to play a role in driving growth in the future. Many OECD countries (northern Europe, Japan and the United States) have recoveredsomewhat. Their future innovation performance remains uncertain; it will depend on macroeconomic conditions but also on their ability to maintain innovation as a policy priority.5. To date there is no evidence of a reallocation of resources towards more innovative businesses. While there have been more bankruptcies than before the crisis, new business entry has also been significantly depressed. Venture capital investment, which can help support entry of innovative firms, has yet to recover to its pre-crisis level.6. Uncertainties over market conditions in the currently unstable global macroeconomic situation have inhibited investment in innovation. Large companies and banks are engaged in a process of deleveraging and hoarding that is detrimental to all types of investment, including innovation. Financing constraints have also increased but are not the main explanation to date for the weakening of innovation activities. Experimenting further with these...

show abstract

Does the natural selection mechanism still work in severe recessions?

Cited by 119 publications

References 37 publications

What Types of Companies Have Female and Foreign Directors?

What Types of Companies Have Female and Foreign Directors?

Shaking Up the Firm Survival: Evidence from Yogyakarta (Indonesia)

Innovation in the crisis and beyond

Contact Info

Product

Resources

About