-

Historically, in Japan, out-of-court corporate restructurings have played a significant role in disciplining managers in the near-absence of hostile takeover activity and shareholder activism. This paper analyzes management turnover in a large sample of Japanese firms that underwent restructurings between 1981 and 2010. I find that restructurings that happen in later stages of financial distress, and those that are not initiated by the firm itself, are more likely to involve management turnover, as are restructurings in which the firm's main business operations are left intact. Furthermore, in restructurings after the reforms around the year 2000, management turnover is more likely to occur if the local potential managerial labor market is substantial. After controlling for firm characteristics and the firm's initial financial condition, it does not appear that management turnover is associated with an improvement in post-restructuring operating performance--in fact, the effect is significantly negative by estimates that address the non-random nature of management turnover. However, for restructurings led by equity funds, management turnover is associated with a more successful turnaround of the firm's performance. These results suggest that equity funds possess the ability to locate and recruit talented outside managers in a thin market for experienced managers.

 

Michael Furchtgott is an economist interested in corporate finance and governance. His current research investigates Japanese corporate restructurings and the behavior of firms and lenders when financial distress arises.

Furchtgott has completed his PhD in economics at the University of California, San Diego, where his research on corporate financial restatements has demonstrated that firms frequently circumvent laws designed to protect investors.

He holds a BA in economics and mathematics from Columbia University.

Daniel and Nancy Okimoto Conference Room

Shorenstein APARC
Encina Hall C331
616 Serra Street
Stanford, CA 94304-6055

(650) 724-9747 (650) 723-6530
0
Shorenstein Postdoctoral Fellow in Contemporary Asia
FURGHOTT,_Michael_3x4.jpg PhD

Michael Furchtgott is an economist interested in corporate finance and governance. His current research investigates Japanese corporate restructurings and the behavior of firms and lenders when financial distress arises.

Furchtgott has completed his PhD in economics at the University of California, San Diego, where his research on corporate financial restatements has demonstrated that firms frequently circumvent laws designed to protect investors.

He holds a BA in economics and mathematics from Columbia University.

Michael Furchtgott Postdoctoral Fellow in Contemporary Asia Speaker Shorenstein APARC
Seminars

In this eleventh session of the Strategic Forum, former senior American and South Korean government officials and other leading experts will discuss current developments in the Korean Peninsula and North Korea policy, the future of the U.S.-South Korean alliance, and a strategic vision for Northeast Asia. The session is hosted by the Korean Studies Program at the Shorenstein Asia-Pacific Research Center, in association with Korea National Diplomatic Academy, a top South Korean think tank.

PARTICIPANTS

United States:

Michael Armacost, Distinguished Fellow, Shorenstein APARC, Stanford University

Karl Eikenberry, Distinguished Fellow, Shorenstein APARC

Siegfried Hecker, Professor, Management Science and Engineering; former co-director, CISAC, Stanford University

Thomas Fingar, Distinghished Fellow, Shorenstein APARC

T.J. Pempel, Professor, Political Science, University of California, Berkeley

Gi-Wook Shin, Professor, Sociology; Director, Shorenstein APARC, Stanford University

Daniel Sneinder, Associate Director for Research, Shorenstein APARC

David Straub, Associate Director, Korean Studies Program, Shorentein APARC

Kathleen Stephens, 2013–14 Koret Fellow, Korean Studies Program, Shorenstein APARC

Seoul, Korea

Workshops
Authors
News Type
News
Date
Paragraphs

Reports of the detention and eventual release by North Korean authorities of an 85-year-old Palo Alto retiree, Merrill Newman, spurred a wave of media interest. Newman, a Korean War veteran, had decided to go on a tour of North Korea, apparently in part to revisit the place where he had served more than 60 years ago.

He was accompanied by a fellow retiree, Bob Hamrdla, also a Palo Alto resident. According to accounts provided by Hamrdla, Newman was taken off the plane as he was leaving the country after a nine-day tour. During his detention, Newman was videotaped reading an apology, in which he accepted responsibility for “hostile acts” and requested forgiveness.

After 42 days in custody, Newman was released and arrived back in the United States on Dec. 7. Newman was greeted by his family and spoke briefly to reporters, recognizing the U.S. Embassy in Beijing and the Swedish Embassy in Pyongyang for securing his release, before heading home. The full details that led to Newman’s detention still remain unclear.

Both local and national media rushed to understand these events, first reported in detail by the San Jose Mercury News (Nov. 20). Reporters sought out expertise at Shorenstein Asia-Pacific Research Center, speaking to Associate Director for Research Daniel Sneider and to Korean Studies Program Associate Director David Straub, who both have long experience with Korea and have been frequently cited as experts.

Sneider was cited in newspaper reports in the San Jose Mercury News (Nov. 20) and the Los Angeles Times; was interviewed on local radio, and also interviewed for broadcast on the evening news programs of the CBS, ABC and NBC networks local affiliates. Straub was quoted by NK News, a leading agency specializing in coverage of North Korea, also cited by the Washington Post. Most recently, Sneider was cited in the San Jose Mercury News (Dec. 7) upon the confirmation of Newman’s release.

Hero Image
detention photo
All News button
1
-

 Abstract:

That the Cairo Conference has been overshadowed by the wartime summits at Teheran and Yalta is understandable given the start of the Cold War in Europe almost immediately after the German surrender in May 1945. To understand the collapse of relations between the Anglo-American allies on the one hand and the Soviet Union on the other, it is important to look at the conferences at Teheran and Yalta, the interactions between Churchill, Roosevelt, and Stalin, the understandings they reached, and their misunderstandings. That said, the Cairo Conference also marked an important turning point in the relations between the allies in the war against Japan: China, Great Britain, and the United States, the consequences of which were critical to the defeat of Japan and the post-war order in East Asia.

The interaction of Churchill, Roosevelt, and Chiang in Cairo is every bit as compelling from a human interest perspective as the interplay between Churchill, Roosevelt, and Stalin at Teheran and Yalta, albeit less studied, and offers a sobering reminder of what can happen when policy is made at the very highest level by individuals who know relatively little about the culture of their partners and are not able to separate myths and stereotypes from realities. Summit conferences may make for good theater, but do not necessarily result in good policies as an examination of the Cairo Conference reveals.

Each of the parties at the Cairo Conference came with their own agendas, frequently contradictory. Generalissimo and Madame Chiang hoped to obtain a commitment to make the China-Burma-India theater of war the focal point in the war against Japan, a matter not only of strategic importance to them but also of poetic justice. They also sought to redress grievances against Japan and Great Britain in the post-war era. Roosevelt hoped to buoy the ego and spirits of Chiang and to insure that the Kuomintang regime would not make a separate peace with Japan thus allowing the Japanese to redeploy the nearly one million troops they had stationed in China. Churchill had no real interest in meeting with Chiang and his wife at Cairo at all, but felt obliged to humor Roosevelt and to make sure that no agreements would be reached in Cairo that would in any way prejudice British colonial interests in Southeast Asia in the post-war era. Given these conflicting agendas, it is no wonder that none of the participants would be satisfied with the results of their labors in Cairo.

 

Speaker Bio:

Ronald Heiferman is Professor of History and Director of the Asian Studies Program at Quinnipiac University in Hamden, Connecticut, and a Fellow of Berkeley College at Yale University. He has also taught at Connecticut College and the City University of New York. Dr. Heiferman was educated at Yale and New York University (Ph.D.). Professor Heiferman has authored or co-authored more than a dozen books, including Flying Tigers (New York: Ballantine, 1971), World War II (London: Hamlyn, 1973), Wars of the Twentieth Century (London: Hamlyn, 1974), The Rise and Fall of Imperial Japan (New York: Military Press, 1981), the Rand-McNally Encyclopedia of World II (New York: Rand-McNally, 1978), and The Cairo Conference of 1943: Roosevelt, Churchill, Chiang Kai-shek and Madame Chiang (McFarland, 2011). His latest book, The Chinese Idyll of Franklin D. Roosevelt, will be published in 2014. Professor Heiferman was a Yale-Lilly Fellow in 1978, a Yale-Mellon Fellow in 1984, and has also been the recipient of five National Endowment for the Humanities Fellowships: Duke University (1974), University of Chicago (1977), Stanford University (1980), Harvard University (1987), and the University of Texas (1991).

CISAC Conference Room

Ronald Heiferman Professor of History and Director of the Asian Studies Program Speaker Quinnipiac University
Seminars
-

About the Topic: This presentation includes a review of significant trends in the development of nuclear energy in China, from the mid1980's until the present, and related future prospects. Among the subjects covered will be: nuclear technology development based on competition/cooperation between a giant state owned enterprise and an upstart commercial utility from the south; different development goals and technology development by the two corporations; the impact of Fukushima on nuclear energy developments in China; the current status of the Chinese nuclear energy system; future growth prospects considering a range of different challenges in the industry; and nuclear technology development prospects and intellectual property issues.

About the Speaker: Chaim Braun is a consulting professor at CISAC specializing in issues related to nuclear power economics and fuel supply, and nuclear nonproliferation. Braun pioneered the concept of proliferation rings dealing with the implications of the A.Q. Khan nuclear technology smuggling ring, the concept of the Energy Security Initiative (ESI), and the re-evaluation of nuclear fuel supply assurance measures, including nuclear fuel lease and take-back. Before joining CISAC, Braun worked as a member of Bechtel Power Corporation's Nuclear Management Group, and led studies on power plant performance and economics used to support maintenance services. Prior to that, Braun worked at United Engineers and Constructors (UE&C), EPRI and Brookhaven National Laboratory (BNL).

CISAC Conference Room

Chaim Braun Consulting Professor, CISAC Speaker
Seminars
-

A large literature examines performance pay for managers in the private sector, but less is known about the use of performance pay for their public sector counterparts. Improving public service delivery may nonetheless depend heavily on aligning the incentives of public sector managers with social objectives. In this paper we study performance incentives for school administrators and how their responses to incentives vary with the amount of resources under their control. Our specific focus is the implementation of new, school-based programs to reduce childhood anemia in rural China. We randomly assigned 170 schools to three levels of performance pay for reductions in student anemia across which we orthogonally assign two levels of block grants. We emphasize three key findings. First, with a smaller block grant, large incentives were effective, but smaller incentives (10% of the size) were ineffective in reducing anemia. Second, absent explicit anemia-based incentives, increasing the size of block grants under the control of school administrators lead to sizeable reductions (but was nearly twice as costly as incentives alone). Third, we find that incentives crowd out the effect of additional resources (or vice-versa). Our evidence suggests that this crowding-out result is attributable, at least in part, to risk avoidance and the nature of existing ‘bureaucratic incentives’ facing school administrators.

CISAC Conference Room

Encina Commons Room 101,
615 Crothers Way,
Stanford, CA 94305-6006

(650) 723-2714 (650) 723-1919
0
Henry J. Kaiser, Jr. Professor
Professor, Health Policy
Senior Fellow at the Freeman Spogli Institute for International Studies
Senior Fellow at the Stanford Institute for Economic Policy Research
Professor, Economics (by courtesy)
grant_miller_vert.jpeg PhD, MPP

As a health and development economist based at the Stanford School of Medicine, Dr. Miller's overarching focus is research and teaching aimed at developing more effective health improvement strategies for developing countries.

His agenda addresses three major interrelated themes: First, what are the major causes of population health improvement around the world and over time? His projects addressing this question are retrospective observational studies that focus both on historical health improvement and the determinants of population health in developing countries today. Second, what are the behavioral underpinnings of the major determinants of population health improvement? Policy relevance and generalizability require knowing not only which factors have contributed most to population health gains, but also why. Third, how can programs and policies use these behavioral insights to improve population health more effectively? The ultimate test of policy relevance is the ability to help formulate new strategies using these insights that are effective.

Faculty Fellow, Stanford Center on Global Poverty and Development
Faculty Affiliate, Stanford Center for Latin American Studies
Faculty Affiliate, Woods Institute for the Environment
Faculty Affiliate, Interdisciplinary Program in Environment & Resources
Faculty Affiliate, Stanford Center on China's Economy and Institutions
CV
Date Label
Grant Miller Speaker
Sean Sylvia Speaker
Seminars
News Type
News
Date
Paragraphs

On November 7, Stanford economist Takeo Hoshi presented a coauthored paper "Will the U.S and Europe Avoid a Lost Decade?  Lessons from Japan's Post Crisis Experience" at the Fourteenth Jacques Polak Annual Research Conference at the International Monetary Fund headquarters in Washington DC. 

Hero Image
logo
Sakura, the bank of Japan, April 2009 | Flickr user saitomo
All News button
1
Paragraphs

China dominates the global aquaculture industry, most clearly with its massive production and consumption of low trophic-level carp species and its rapidly rising output and exports of tilapia. Although these fish do not require a high percentage of fishmeal in their diets, their large production volumes contribute to China's leading role in global fishmeal consumption. The magnitude of China's dependence on fishmeal supplies – and hence the pressure it places on wild forage fisheries – remains a contentious issue. In this study, we use primary survey data from three provinces in China to examine the current use of aquafeeds in the carp and tilapia sectors and to assess how future demand for fishmeal will likely be affected by the country's shifting patterns of seafood consumption and production. Our results indicate that virtually all carp and tilapia farmers in our survey regions use manufactured feeds containing fishmeal and that median feed conversion ratios (FCRs) are in the range of 1.4 to 1.9. Feeds are poorly targeted on many farms due to widespread polyculture practices, especially the integration of higher-value species into carp ponds to improve farm-level profitability. Our study also suggests that government statistics underestimate household demand for fish by 20–35% because they do not account for out-of-home consumption. As China's demand for fish continues to rise in the future with per capita incomes and urbanization, the co-culture of high-valued species and the use of aquaculture feeds containing fishmeal are also expected to expand.

All Publications button
1
Publication Type
Journal Articles
Publication Date
Journal Publisher
Aquaculture
Authors
Chris Fedor
Rosamond L. Naylor
News Type
News
Date
Paragraphs

Japan Program at Shorenstein Asia-Pacific Research Center received a grant from Sasakawa Peace Foundation in Japan for the New Channels project.  Hideichi Okada, Senior Advisor at NTT Data Institute of Management and Consulting has joined the Japan Studies Program at APARC as the 2013-14 Sasakawa Peace Fellow to play a leading role in organizing the annual New Channels Dialogue.

On October 8th, Hideichi Okada spoke on “Japan’s Energy Challenge” at a Shorenstein APARC seminar in the Philippines Conference Room at Encina Hall.  As the world watches with great interest on how Japan will overcome its energy challenges, Okada highlighted the importance of formulating a new energy policy and reducing the cost of renewable and imported hydrocarbon.  He also pointed out the challenges of decommissioning damaged nuclear power plants and cleaning contaminated soil and water, which would require a new technology as well as an international cooperation.  The talk was followed by active discussion with the participants.

Hero Image
logo
Hideichi Okada, 2013-14 Sasakawa Peace Fellow, gave a talk on "Japan's Energy Challenge" on October 8, 2013. | Meiko Kotani
All News button
1
-

The sixth annual Koret Workshop will convene to examine the obstacles to and opportunies for increased North-South Korean cooperation.

In light of changing circumstances on the Korean Peninsula, including the inauguration of new leaderships in both Seoul and Pyongyang, the workshop will take a fresh look at previous, existing, and proposed or possible joint North-South cooperative projects.

This event is made possible through the generous support of the Koret Foundation.

Bechtel Conference Center

Conferences
Subscribe to Northeast Asia