Kyushu University Academic Staff Educational and Research Activities Database
List of Papers
Tsung-ming Yeh Last modified date:2024.06.26

Professor / Economic Analysis and Policy / Department of Economic Engineering / Faculty of Economics

1. Tsung-ming Yeh, Financial Teaching by Parents and Financial Education at School or Workplace: Evidence from Japan, Financial Services Review, Vol 30, 2023.06, This study investigates the differential roles of financial socialization within the family versus financial education at school or the workplace, using data from a representative sample of 25,000 Japanese individuals. The results indicate that different platforms may play different roles. While the adults’ short-term financial behaviors, which involve regular feedback and immediate consequences for deviation, are primarily related to their parent’s financial advising in childhood, long-term financial behaviors, which require complex planning and decision-making, are primarily related to financial education received at school or the workplace. The results also suggest the benefits of accumulating financial experiences and education in different stages..
2. Yeni Januarsi, Tsung-Ming Yeh, Accounting Comparability and Earnings
Management Strategies: Evidence from Southeast
Asian Countries, Emerging Markets Finance and Trade, 10.1080/1540496X.2022.2075258, 2022.05, [URL], We examined the effect of accounting comparability on the use of accrual
earnings management (AEM) and real earnings management (REM) among
five members of the Association of Southeast Asian Nations. Analyzing 1,195
listed non-financial companies from 2014 to 2017, we find that more comparable
accounting information between firms induces managers to engage
in more REM and less AEM, supporting the substitute hypothesis. The results
remain similar under the robustness tests. Our results suggest that reporting
and legal environment factors may affect cost-benefit considerations versus
incentives for using earnings management strategies..
3. Tsung-ming Yeh,Yue Ling, Confidence in Financial Literacy, Stock Market Participation, and Retirement Planning, Journal of Family and Economic Issues,, 2021.05, This study investigated whether overconfidence with respect to one’s financial literacy affects stock market participation and retirement preparation and if so, how. Using an effective sample of 12,653 Japanese individuals, the empirical results confirm that financial literacy plays a
positive role, while confidence in financial literacy also matters. For people with relatively low financial literacy, overconfidence can encourage taking financial action, while for people with high financial literacy, underconfidence can deter action. Confidence could have an effect equal
to or greater than financial literacy. Moreover, it was also found that the positive effect of overconfidence is weaker for women than for men..
4. Tsung-ming Yeh, An empirical study on how financial literacy contributes to preparation for retirement, Journal of Pension Economics and Finance, 10.1017/S1474747220000281, 2020.08, This study provides empirical evidence on the mechanisms through which financial literacy may be associated with saving for retirement, in the three phases of the decision-making process—information perception, information search and evaluation, and decision-making and implementation. The results indicate that financial literacy has significantly positive effects on one’s awareness of post-retirement financial needs, comparing alternatives when purchasing financial products, displaying fewer present-time, and planning for and setting aside funds for retirement. Financial literacy not only directly contributes to planning for future, but also indirectly via a reduction in behavioral biases..
5. Tsung-ming Yeh, Determinants and consequences of shareholder proposals: The cases of board election, charter amendment, and profit disposal, JOURNAL OF CORPORATE FINANCE, 10.1016/j.jcorpfin.2017.05.004, 45, 245-261, 2017.08, By investigating shareholder proposals in Japan during 2004-2013, this study aims to address the question whether exercising legally powerful shareholder rights has an impact on the management. Compared with their counterparts in the United States, Japanese shareholders are entitled to more statutory rights, including binding shareholder resolutions on issues relating to board election, charter amendment, and profit disposal. The empirical tests reveal several important results. First, different types of shareholder proposals are triggered by varying firm characteristics. Second, resolutions on the board election and charter amendments relating to corporate governance receive higher votes than those for profit disposal. Voting outcome is also positively associated with foreign shareholding, duration of the general meeting, and the firm's history of receiving proposals. Moreover, resolutions initiated by large shareholders have positive impacts on the target firms, which reported positive announcement-associated abnormal returns. Improvements in the operating performance are observed for firms passing board election resolutions and firms receiving charter amendment proposals from large shareholders. The management also increased share buyback and dividend payout in response to demands by large shareholders, although there was no significant change in the post-resolution operating performance. Overall, the results indicate that statutorily powerful shareholder rights, when exercised by large shareholders, can have a positive impact. (C) 2017 Elsevier B.V. All rights reserved..
6. Tsung-ming Yeh, Governance, Risk Taking and Default Risk during the Financial Crisis: the Evidence of Japanese Regional Banks, Corporate Governance: The International Journal of Business in Society, 10.1108/CG-02-2016-0027, 17, 2, 2017.04.
7. Tsung-Ming Yeh, Large Shareholders, Shareholder Proposals, and Firm Performance: Evidence from Japan, CORPORATE GOVERNANCE-AN INTERNATIONAL REVIEW, 10.1111/corg.12052, 22, 4, 312-329, 2014.07, Manuscript Type: Empirical
Research Question/Issue: Previous studies, primarily based on evidence from the United States, fail to link shareholder activism to firm performance, with one explanatory factor being that the legal and regulatory system in the United States limits the anti-director rights of shareholders. This study is motivated by the question of whether legally binding shareholder resolutions can pressure management to improve firm performance and to enhance firm value.
Research Findings/Insights: By investigating 135 publicly listed Japanese firms which received shareholder resolutions from 2004 to 2010, this study finds supportive evidence for shareholder proposals. Announcement-associated abnormal returns are higher for firms receiving election-related proposals by large sponsors, than those unrelated to board election. Furthermore, an improving trend begins to appear in the post-resolution year, particularly significant for firms receiving proposals to remove board members.
Theoretical/Academic Implications: This study provides new evidence suggesting that large shareholder activism in Corporate Japan can perform roles that used to be played by main banks before the 1990s. It also suggests that in countries where there is no active takeover market, large shareholders can effectively discipline entrenched management through active engagement.
Practitioner/Policy Implications: This study offers insights to corporate managers on the importance of communicating with large shareholders and addressing their concerns..
8. Tsung-ming Yeh, The effects of anti-takeover measures on Japanese corporations, Review of Quantitative Finance and Accounting, 10.1007/s11156-013-0361-0, 42, 2, 2014.05.
9. Tsung-ming Yeh, Do Private Equity Funds Increase Firm Value?
Evidence from Japanese Leveraged Buyouts, Journal of Applied Corporate Finance, 10.1111/j.1745-6622.2012.00405.x, 24, 4, 2012.12, Abstract

The author summarizes the findings of his recent study of 62 buyouts of listed Japanese companies by both Japanese and “foreign” private equity funds that were transacted between 2000 and 2007. Roughly half of the author's sample of transactions were accomplished by means of takeover bids by PE funds, and such deals were transacted at prices that represented a premium (of roughly 12%) to current market values. Most of the other PE transactions were privately negotiated deals in which the purchase prices involved discounts (of about 15% on average) to current value. For both sets of deals, however, the announcements of such buyouts were associated, on average, with a significantly positive stock market reaction.
By the cutoff date of the study (May 2010), 30 of the 62 acquired firms had realized “exits.” Those companies (though not the others) experienced significant average improvements in operating performance; and the extent of such improvements were roughly consistent with the size of the positive market reaction to the buyout announcements. The test results suggest that the value increases can be attributed to the more efficient use of assets and reduction of operating costs. Meanwhile, there was no evidence suggesting that the acquired firms cut back on their research and development, capital investments, or employee wages and growth. What's more, examination of the operating performance of the 30 companies after their exits showed no deterioration in profitability or investment spending..
10. Tsung-ming Yeh, Bank Directorship and Bidder’s Returns in Japanese Takeovers , 経営行動科学(Japanese Journal of Administrative Science), 20, 2, 2007.06.
11. Tsung-ming Yeh, The Impact of M&A on the Shareholders’ Wealth? From the Evidence of Taiwanese Corporations", The Developing Economies, 40, 4, 553-563, 2002.12.
12. Tsung-ming Yeh, Yasuo Hoshino, Productivity and operating performance of Japanese merging firms: Keiretsu-related and independent mergers, JAPAN AND THE WORLD ECONOMY, 10.1016/S0922-1425(01)00081-0, 14, 3, 347-366, 2002.08, This paper aims to investigate the effects of mergers on the firms' operating performance and the Keiretsu's roles in the performance variation. This is motivated by the contradicting arguments whether Japanese Keiretsu can effectively control agency conflicts and increase firm efficiency. Examining 86 Japanese corporate mergers completed from 1970 to 1994, we found that: (1) Japanese mergers failed to improve the firm efficiency, and even caused deterioration in the firms' operating performances; (2) the Keiretsu relationship was particular detrimental to the merging firms' post-merger performance. (C) 2002 Elsevier Science B.V. All rights reserved..
13. Tsung-ming Yeh, Yasuo Hoshino, Shareholders' Wealth, Bank Control, and Large Shareholders - An Analysis of Japanese Mergers , 経営財務研究, 21, 2, 2001.12.
14. Tsung-ming Yeh, Yasuo Hoshino, The Effects of Mergers and Acquisitions on Taiwanese Corporations, Review of Pacific Basin Financial Markets and Policies, 10.1142/S0219091500000108, 3, 2, 2000.06.
15. The Effect of Legal Systems on the Performance of Japanese Buyouts in Europe.
16. Estimating the Impact of the Inter-High School Ski Championship on the Host City's Economy.
17. The Impact of the Proposed Professional Basketball Club on Akita Economy.
18. The Controlling Shareholders, Disclosure and Firm Value: An Analysis of Taiwanese Firms.