Professor Toru Nakai

Area and Subject Taught Financial Management
Research Theme(s) SMEs and Finance
Academic Degrees Ph.D., Hiroshima University
Keywords for Research Field SMEs, Mergers and Acquisitions, Corporate Value
Office Phone Number 81-75-705-1489
e-mail

Research Overview

Amid the rise of shareholder activism and drafting of new corporation laws corporate mergers and acquisitions (M&A) have multiplied in Japan in recent years. However,most of the cases that have captured public attention are those involving large, publicly traded corporations. Certainly, most of the widely commented hostile takeovers by public tender have tended to involve publicly traded companies.
In view of the above, it is not surprising that most of the research on M&A, in fields including strategy, finance and stock market theory, is focused on publicly traded companies. In management-finance theory in particular, publicly traded companies form the bulk of cases studied with respect to theories of share-purchase decision-making, study of share-price fluctuations before and after share-purchase announcements, and proving analysis of P/E ratios.
However, a merger or acquisition is more than just a financial transaction. It is also a vital choice-point in corporate strategy for determining the direction of the company. If we recognize that M&A is an important part of the strategic arsenal of any company, not just large, publicly traded ones, it follows that researchers must observe M&A behavior in SMEs as well. Currently, little research is being conducted in this field; in fact, M&A activity is rising among SMEs today, suggesting that focusing on and analyzing M&A in SMEs, and understanding and modeling this behavior, are matters of urgent importance. Against this background I am directing my attention to the field of M&A among SMEs. Building on a study of M&A theory, I am investigating the current state of affairs in this field, including numerous cases in the overseas literature, with focus on management transfer in SMEs and valuation of SMEs.

Notable Publications and Works

Nakai(2015) "Corporate Succession and Performance in Japanese Small and Medium Enterprises" Journal of Japan Financial Management Association , Vol.26, (in English)
Nakai(2014) "Financial Management", Inoue et al. ed., Introduction to Small Business Management, Chuo Keizai Sha. (in Japanese)
Nakai(2014) "Succession Management", Inoue et al. ed., Introduction to Small Business Management, Chuo Keizai Sha. (in Japanese)
Nakai(2013) Introduction to Venture Finance, Chuo Keizai Sha. (in Japanese)
Nakai(2009) "Succession as a "Second Start-ups" ~Do they create additional corporate value in comparison with start-ups?~", Journal of Japan Financial Management Association , Vol.20. (in Japanese)
Nakai(2009) "Succession and M&A", Sakamoto & Toribe ed., Small Business Finance , Chuo Keizai Sha. (in Japanese)
Nakai(2008) "Corporate Succession and M&A ~From a View Point of Evaluation of Corporate value and Goodwill~", Kyoto Management Review , Vol.14. (in Japanese)
Nakai(2006) "Hostile Take-Over and Defense", Nakai ed., Value Creation Management ,Bunshindo. (in Japanese)
Nakai(2005) Introduction to Entrepreneur Finance , Chuo Keizai Sha. (in Japanese)