mini传媒

Published on September 28, 2021
Job titles and other details are as of the time of publication.
(The interview was conducted in Japanese and was thereafter translated into English.)

Financial economics examining the relationship between finance and the real economy

I specialize in financial economics, with my research covering topics related to monetary policy, international finance, corporate finance, financial regulations, and banking theory.

When speaking of finance, people may first imagine the flows of money and the prices of financial instruments, but I focus more on how the monetary decisions and results of economic agents affect the real economy, such as the business climate. That is how I refer to my area of specialization as financial economics. I analyze the impact of uncertainty in a country’s stock market spilling over to other nations through international capital flows, while examining the background of corporate cash holdings and their effects on capital investment. I also conduct research on how monetary policy affects the entire financial environment in response to business cycles.

I am currently working on corporate decision-making to examine how advantageous cash on hand is during a major external financial-crisis-level shock. Economic downturns triggered by such events as the collapse of Lehman Brothers, the 2011 Great East Japan Earthquake, and the coronavirus pandemic were not attributed to Japan’s economic policies and management decision-making. My research focuses on the impacts of these exogenous shocks in order to understand the behavior of Japanese businesses. It is difficult to analyze how effective corporate cash holdings are in normal times when the economy is stable. I therefore plan to conduct an empirical analysis of the uses and effects of cash with differences likely to surface after a major external shock.

As a faculty member, I teach Corporate Finance I and Economics for Managers for the Master of Business Administration (MBA) program and Game and Contract Theory for Management and Finance Studies for the Doctor of Business Administration (DBA) program.

My high school years when I encountered the “Introduction to Economics” and learned that economic phenomena could be explained

I first became interested in economics as a high school student. My father, who worked for a financial institution, always watched economic news on television. And sitting beside him, I naturally began learning economic and financial terms.

My casual encounter with Introduction to Economics (Shigeto Tsuru, Kodansha Gakujutsu Bunko, 1976) in the high school library also had a major influence on me. I picked up and read part of the book during a recess period, and was very impressed by the descriptions of how prices are determined. That is just one example, but I became strongly interested in economics after learning that economic phenomena could be explained. Since the author, Shigeto Tsuru, served as professor emeritus and president of Hitotsubashi University, I began to seriously consider applying to the university’s Faculty of Economics.

After my third year at Hitotsubashi University, I took two seminar courses on theoretical economics and econometrics, with the former classified as the main seminar and the latter as the sub-seminar. But for me, both were main seminars, and I remember spending almost equal time studying the two subjects and interacting with the teachers. Some graduate students participate in more than one seminar at a time, but it is not common for undergraduates to do so. I chose these two seminars at a time when my aspirations to become an academic researcher began to sprout.

Accustomed to university study and campus life, I grew interested in studying abroad as well. I was motivated when a friend who went to the United States for language training returned with inspirational experiences. I applied for the university’s study abroad program supported by Josuikai, the alumni association of Hitotsubashi University, and Meiji Sangyo, and studied at the University of California, Berkeley, for one year from the summer of my senior year. I could only take classes in the School of Business Administration in accordance with the agreement between the two universities, but the subjects of marketing and corporate strategy theory continue to prove useful to my career.

Looking back, I always had two pillars during my school years: two seminars with different themes, Hitotsubashi University and the University of California, Berkeley, and economics and business administration. Multiple pillars also developed after I joined the Bank of Japan.

Seconded to international and academic institutions while at the Bank of Japan for 28 years

I worked at the Bank of Japan for 28 years, beginning in 1991. I considered going on to graduate school to become a researcher, but I chose to work instead. After joining the bank, I was tasked with research and analyses of financial markets and the banking industry, and accumulated in-depth knowledge of finance, including international finance, in response to operational needs.

While employed at the bank, I enjoyed working at various international and academic institutions through study abroad opportunities and secondments.

In Britain, I studied at the University of Oxford, where I earned both master’s and doctorate degrees in economics, and was seconded as a visiting research fellow to the London School of Economics and Political Science (LSE). I was also seconded to the Swiss and Hong Kong units of the Bank for International Settlements (BIS), where I was responsible for analyzing global financial markets. At Hitotsubashi University, I served as a professor teaching financial economics at the Institute of Economic Research and a specially appointed professor in charge of courses on macroeconomics and global financial systems at the Graduate School of Business Administration. In these ways, in addition to the Bank of Japan, I had different pillars of work experience at various institutions.

It is not unusual for Bank of Japan employees to study abroad or work as secondments, but I was probably provided with more opportunities than other employees to work externally. With my desire to become a researcher in mind, I was fortunate to teach my area of specialization based on practical work. After leaving the bank, I was a professor at Nihon University College of Economics before assuming my current position of professor at the School of International Corporate Strategy (ICS) in Hitotsubashi University Graduate School of Business Administration in 2020.

Enjoy communicating with students who are actively building their career development plans

People like me from the field of economics are in the minority at Hitotsubashi ICS, but globally, it is not uncommon for business schools to have researchers in both business administration and economics. In addition to Corporate Finance, a required subject in business school to study corporate and business valuation, I utilize my knowledge of economics to teach Economics for Managers and contribute to the education of Hitotsubashi ICS. My lessons address such questions as how prices should be determined to maximize profits, what are the rational approaches to enter certain industries, how production and commodity prices in the overall economy are decided, and how these decisions affect economic policy.

As globalization rapidly advances, a major shock striking one country can have a widespread impact. The shock first spills over through financial channels, and then spreads to the real economy. Managers must be aware of these impacts. It is also becoming increasingly essential to logically understand the mechanisms of finance and the real economy as well as economic phenomena arising from their interaction, and to apply this understanding to the decision-making process. With these approaches learned through my experiences working for various institutions in different countries, I make sure that my lessons impart what I have experienced.

I am happy to see students showing strong enthusiasm for understanding and acquiring what I teach. Hitotsubashi ICS students are highly aware of career development and demonstrate a clear determination to make full use of their school years to secure their futures. I have a great time interacting with them in class.

The DBA program’s Game and Contract Theory for Management and Finance Studies is a course not previously offered at Hitotsubashi ICS. I was assigned to teach it because of the importance of learning about economic theory beyond the introductory level that can be applied to business administration. I am most pleased that my research and work experiences are helping students deepen their own learning in this way. My lessons involve highly active question-and-answer discussions.

“At least” two pillars are the secret to a fulfilling life

If asked what the secret to a fulfilling life is, I would tell my students, “Having ‘at least’ two pillars.”

As an undergraduate student I studied hard taking two seminars at the same time. While deepening my learning at Hitotsubashi University in Japan, I seized the opportunity to enroll in a business administration program at the University of California, Berkeley, in the United States. After joining the Bank of Japan, I was seconded to various institutions to acquire the perspective of viewing Japan in terms of the global economy and international finance. My 28 years of experience and knowledge accumulated since I started working have made me what I am today, helping business school students with their studies. I realize that my fulfilling time and activities have been supported by these two pillars that I have cherished. The two pillars can be anything as long as they are taken seriously, and the scale does not matter at all. It is my hope that students will find “at least” two pillars of their own.