Groups and information disclosure: evidence on the Olson and Putnam hypotheses in Japan

Eiji Yamamura

doi:10.1108/03068291211224928

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International Journal of Social Economics

ISSN: 0306-8293

Online from: 1974

Subject Area: Economics

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Groups and information disclosure: evidence on the Olson and Putnam hypotheses in Japan

Document Information:
Title:	Groups and information disclosure: evidence on the Olson and Putnam hypotheses in Japan
Author(s):	Eiji Yamamura, (Department of Economics, Seinan Gakuin University, Fukuoka, Japan)
Citation:	Eiji Yamamura, (2012) "Groups and information disclosure: evidence on the Olson and Putnam hypotheses in Japan", International Journal of Social Economics, Vol. 39 Iss: 6, pp.423 - 439
Keywords:	Information disclosure, Information-disclosure ordinance, Interest group, Japan, Olson, Putnam, Social capital, Social groups
Article type:	Research paper
DOI:	10.1108/03068291211224928 (Permanent URL)
Publisher:	Emerald Group Publishing Limited
Acknowledgements:	JEL classification – G38, P48, Z13
Abstract:	Purpose – There is controversy between Putnam and Olson concerning the role of groups. Putnam argued that small groups contribute to economic growth, whereas Olson asserted that small groups hamper economic growth through rent-seeking behavior. Since the end of the 1990s in Japan, there has been a remarkable rise in the rate of enactment of public information-disclosure ordinances by local governments. This paper aims to use the panel data of Japan to compare the effects of Putnam-type horizontally structured groups and Olson-type vertically structured groups on government information disclosures. Design/methodology/approach – The Arellano-Bond type dynamic panel model is employed to control for unobserved fixed effects and endogeneity bias. Findings – The major findings are as follows: the Putnam-type group has a positive influence on information disclosure; and the Olson-type group has a detrimental effect on information disclosure. Originality/value – These findings support both the Putnam and Olson hypotheses. The characteristics of a particular group should be considered carefully when the influence of that group is examined.