ABSTRACT

A study of all 47 Japanese-Italian production subsidiaries was undertaken during the early part of 1993. One analysis relating to the corporate governance in these firms was reported by Songini et al. (1993). They found the management styles of the companies were significantly related to company size and capital structure. They derived two styles, which may be called ‘involvement’ and ‘hierarchy’; the arguments supporting these are based on the two principal components derived from factor analysis and regression analyses of the data.