In Japanese firms, the allocation of management rights influences the distribution of profit. Using the financial data of Japanese firms in the 1990 fiscal year, I classify firms based on governance structure, and evaluate the distribution structure. As a result, I get the conclusion that the separation of ownership and management has a significant influence on the distribution of profit. In the owner-manager firm, the distribution of profit privileges shareholders. And in the promoted-manager firm, that is, the firm managed by a president who has been promoted from among the employees, the distribution of profit privileges employees.
- Distribution of profit
- Firm-specific skill
- Incomplete contract
- Japanese firms
- Separation of ownership and management