Citation

Discussion Paper Details

Please find the details for DP1545 in an easy to copy and paste format below:

Full Details   |   Bibliographic Reference

Full Details

Title: Inventory Behaviour: A Comparative Study of UK and Japanese Firms

Author(s): Jennifer Corbett, Donald Hay and Eleni Louri-Dendrinou

Publication Date: January 1997

Keyword(s): Inventories, Japanese firms, Panel Data and UK firms

Programme Area(s): Industrial Organization

Abstract: This paper analyses the determinants of the inventory to assets ratio in panel data sets of Japanese and UK firms in the period 1960?85. The analytical framework sets inventory decisions in the context of decisions by the firm about other assets and liabilities, in contrast to traditional models of inventories. Investment in inventories in Japan is found to be particularly related to sector-specific inflation rates and expected sales, negatively related to expected profits, and not much affected by interest rates. By contrast, UK inventories are generally positively related to profit rates, and respond to short-term interest rates. Once other variables are taken into account, the coefficient on a time trend is positive for Japan (negative for the United Kingdom), which casts some doubt on the widely held view of Japanese innovation in inventory holding.

For full details and related downloads, please visit: https://cepr.org/active/publications/discussion_papers/dp.php?dpno=1545

Bibliographic Reference

Corbett, J, Hay, D and Louri-Dendrinou, E. 1997. 'Inventory Behaviour: A Comparative Study of UK and Japanese Firms'. London, Centre for Economic Policy Research. https://cepr.org/active/publications/discussion_papers/dp.php?dpno=1545