|Author Name||KUBO Katsuyuki (Waseda University) / TSUBONO Kodai (Waseda University)|
|Creation Date/NO.||May 2022 22-E-044|
|Research Project||Frontiers in Corporate Governance Analysis|
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We study the effect of investment funds on wages and employment in Japan, with particular emphasis on the possible conflicts of interest between investment funds and the employees of target firms. Investment funds may try to gain profit by reducing wages and employee numbers. We contribute to the literature by analyzing the effect of investment fund on wages and employment in listed firms in Japan, using data from 2007 to 2017. Considering that the activity of investment funds varies across countries, we surmised that it would be interesting to examine Japan’s data. We employ propensity score matching difference in difference method and a triple difference model to examine the impact of investment funds on employment conditions. It is shown that in general, there is a decrease in the number of employees in target firms.