Abstract

In this paper, we research the linkage between the equity ownership and debt ratios as to the corporations in the Nikkei 225 stock index in Japan. The findings with regard to the Nikkei 225 firms from our investigations are as follows. First, we clarify that the relations between debt ratios and the shareholding ratios of foreign companies are strongly negative. Second, we also reveal that the relations between debt ratios and the shareholding ratios of the domestic non-financial corporations are strongly positive. Third, we further derive that the relations between debt ratios and the shareholding ratios of the 10 largest shareholders are generally negative.

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