Excess Capacity and Difficulty of Exit

Peng Xu is a professor at Hosei University, Tokyo, where he teaches corporate finance and corporate governance. His areas of expertise include hedge fund activism, corporate restructuring, and corporate governance. Dr. Xu is the author of numerous corporate finance and governance articles that have appeared in academic journals in economics, including the Journal of Japanese and International Economies, Japan and the World Economy, Journal of Restructuring Finance, and Journal of Financial Markets. He received the M&A Forum Award 2016 as a chapter author. He was a faculty fellow of the Research Institute of Economy, Trade and Industry during 2003–2006. He has served on several journal editorial boards, including as an editor of the Journal of Economic Policy Studies and the Law and Economics Review. He received his Ph.D. in economics from The University of Tokyo and his B.A. in social engineering from the University of Tsukuba.Sumio Saruyama is a lead economist of the Japan Center for Economic Research (JCER). He received his B.A. from The University of Tokyo. He studied at Harvard University in 1985–1986. and received his Ph.D. in economics from Hosei University in 2018 for his research on exit behavior of troubled firms. At JCER, he is involved in analysis and policy recommendations on structural issues in the Japanese economy, such as the declining birthrate and aging population, public finance, and trade policies.

• Introduction.- Zombie Businesses in Electronics Industry: Case Studies.- Misallocation of Internal Fund to Loss-Making Zombie Businesses in Electronics Industry.- Slow Downsizing after Mergers of Individual Loss-Making Parts and Components Divisions.- Final Remarks.