By referring to the attached file of Research Proposal, please develop a 2 page long summary covering the responses to the following FIVE questions. In this summary, make sure that summarizing methods/steps are also included.

 

Also all the revision you make in the file of Research Proposal should be written in RED LETTER.

(Questions)
1.Where does the data being used come from--is it all from public (secondary) sources?
For your information, answer to this question should be also included in the file. I

understand that all the data comes from the attached excel file of CSR database, which is a publicly available data and prepared by Toyo Keizai.

2.Can you add a chart/illustration that illustrates the steps in the methodology?
3. What specifically is being used (in terms of data and processes) to address the key research questions?
4.What are the kinds of tests that will be used to assess the data?
5.Are there any concerns/short comings with these processes?

over

 

 

(Attached files)

1. Research Proposal

2. CSR Database 2013 to 2015

3. IBM Statistics Viewer.Evaluating the Influence of Corporate Governance and Human Resource Practices on 　the Financial Performance of Industrial Firms Listed
in Japan’s NIKKEI Stock Market

RESEARCH METHODOLOGY
Introduction
It is the aim of this study to examine the how CSR affects the productivity of industrial enterprises in the Japan's NIKKEI Stock Market. The financial results of specific industries will be compared with the level of CSR carried out by the given business. The variables will be represented using A & B where A will represent the independent variables while B represents the dependent variables. In this study, the independent variables are corporate governance and Human Resource utilization (Berger, 2015). The dependent variable is the organizational financial performance. This study entails companies that are listed in NIKKEI Stock Market. Specifically, the Toyo Keizai Inc. database will be used to collect the data about CSR for Japanese firms. Toyo Keizai Inc. data base also contains financial information about the company and it will be essential in carrying out this research. The study findings are expected to give significant information showing the relationship between corporate governance and human resource utilization on the companies’ financial performance (Ameer & Othman, 2012).
This study aims to take a general and a specific view on the effect of CSR on the financial returns of firms listed in the Japan's NIKKEI Stock Market. The purpose of this study is to bring together data that will be used in interpreting the role played by human resource utilization and corporate governance on the financial performance of the firms listed on the NIKKEI Stock MARKET. In the first chapter of this, the importance of this study is highlighted. The statement of the problem is also included in the article. There are also research questions that are important in explaining the hypothesis of the paper.
The research methodology used in this paper contains an elaboration of the method used in the previous chapters. In the study design, a rationale for the selection of the research design is discussed. The paper also includes the samples that will be selected for the study which will include information from various companies listed in the NIKKEI Stock Market. Quantitative sources of data will be used to justify this study. The evidence that will make this study valid and reliable will also be included. In this paper, the method used to collect the data will be explained and analyzed. The ethical considerations made when carrying out this study are essential in this research and they have been included. The limitation experienced when developing this study and the summary will finalize this paper.
Statement of the Problem
The main problem this chapter intends to discuss is the inadequate literature concerning the connection of social obligation and the profitability of the businesses trading at the Japan's NIKKEI Stock Market. Many institutions have failed to identify how organizations operate and this is attributed to the limited information on the management of the organizations. Specifically, the slow incorporation of CSR and corporate governance in the business environment in Japan makes the present research essential in bridging the existing knowledge gap and the link between two attributes (Ameer & Othman, 2012). The lack of enough literature increases misinformation on matters of social responsibility among the high-performing companies not only in Japan but the whole world because people rely on assumption or the information brought out by biased sources such as media outlets.
The existing studies depict that businesses and their stakeholders are reluctant in contributing to the well-being of the communities despite the massive profits they make from their activities. Further research indicates that there is an active connection between a company's financial performance and the extent of its social obligations (Ameer & Othman, 2012). Based on this gap, it is important to examine the whole relationship in a comprehensive way. There is a shortage of data explaining how companies in Japan operate and the present survey will fill the data gaps by providing a comprehensive and empirical study that will explain the financial implication of CSR for firms trading at the NIKKEI Stock Market (Filatotchev et al., 2013).
There have been many studies conducted illustrating the relevance of CSR on many aspects of the company. The highlight is placed on the effect of non-profitable ventures on the financial returns gained by a businesses. The literature has been inconclusive and because of the inconclusive research, there have been controversies surrounding the study. A historical analysis reveals that the engagement of the companies in the society's activities has been in existence for a long time. However the companies have been focusing on their stakeholders and shareholders recently and since there is the need for the companies to look beyond the shareholders and the stakeholders, the companies' websites hold information about their CSR activities today (Nakamura &Tommi, 2012).
Research Questions and Hypothesis
In this research, the independent variables are the corporate governance and HR utilization while the dependent variable is the company’s financial performance. The CSR has the power to influence many factors in a company. This study explains the relationship that exists between the independent and dependable variables and also collects data to analyze how the relationship can be tailored to be positive for the companies in the different industries.
The data will be gathered in a group using different ways depending on the variables. These groups will include the year, the industry category, the direction of results and the challenges that will be faced during the collection process. When collecting the data, the companies' strategic plans towards HR utilization, CSR and corporate governance will be considered. This will ensure that all factors that can affect the relationship between HR utilization, CSR and corporate governance on one hand, and the financial performance on the other hand are observed.
The financial performance of the companies under the study that has not been publicized will be exempted from the published data for the company's protection. All the information collected and not shared will be protected by using network security measures. This will ensure that the corporation's data collected will not compromise on its competitiveness in the industry.
The study will focus on the following research questions
What is the relationship between corporate governance and the firm's financial performance of the industrial companies in Japan's NIKKEI Stock Market?
What is the relationship between HR utilization and firm financial performance of industrial firms in Japan’s NIKKEI Stock Market?
Research Methodology
Table 1. Outline of the research approach and methodology
 
Step    Explanation       
Step 1    Quantitative method will be used to determine the correlation between the corporate governance and the human resource utilization on the financial performance.       
Step 2    This step involves using the quantitative data collection method to assist testing the research hypothesis and theories. While the expected sample size was 273, 443 companies were reviewed in 2013, 487 companies in 2014 and 522 companies in 2015 for a total of 1452 companies reviewed over the three years period. The difference was occasioned by the nature of the data source since the companies were from the industrial firms listed in Japan’s NIKKEI stock market.       
Step 3    In this step the limits will be addressed to ensure that they do not interrupt with the methodology used.       
Step 4    The collected information will be analyzed by employing Statistical Package for the Social Science (SPSS) to assess the association between CSR and firm financial performance of industrial firms in Japans NIKKEI Stock Market.       
Step 5    Statistical tests will include a test of normality and a correlation analysis. As the ratings are considered rankings, they will not be distributed. For this reason, Spearman's Rank-Order Correlation will be used to determine the relationship between the three variables: corporate governance, HR utilization and financial performance.       
Step 6    Toyo Keizai Inc. started Toyo Keizai survey as a commemorative project for their 110th anniversary. The purpose of the survey is to introduce those Japanese corporations CSR activities to the world. The Toyo Keizai Inc. sent questionnaires by post and other means to all listed Japanese companies in Japans NIKKEI Stock Market. Toyo Keizai has prepared a CSR database of companies. By providing the CSR information of Japanese corporations for people inside and outside of Japan as appraisal material, Toyo Keizai hopes to enable constructive discussion.    

This project will use a quantitative research method to determine the effect of corporate governance and the human resource utilization on the financial performance of the Japanese Companies listed on the NIKKEI Stock Market. This approach is practical because it requires a limited amount of time and resources. The approach will augment the simplification of the collected data (see Table 1).
The quantitative data collection method also helps in testing the research hypothesis and theories. According to Bernard and Bernard (2012), this strategy supports the collection of huge volumes of data from different sources. The companies under the study can also use the numerical data used on a later date as a reference when researching on other business practices that will enhance their income (see Table 1). It is important to note that while the expected sample size was 273, 443 companies were reviewed in 2013, 487 companies in 2014 and 522 companies in 2015 for a total of 1452 companies reviewed over the three years period. The difference was occasioned by the nature of the data source since the companies were from the industrial firms listed in Japan’s NIKKEI stock market.
The only shortcoming of this method is that it requires the use of limited numbers of variables and assumption. However, it is productive and it will be useful in identifying the link between CSR and firm financial performance of industrial firms in Japan's NIKKEI Stock Market. Based on the presented data, other methods like mixed data collection approach and qualitative data will not be appropriate for the research. This is due to the fact that this approaches will require more resources and will take more time. Furthermore, the quantitative data collection method is reliable to understand the connection of social obligations and monetary returns of industrial firms in the NIKKEI Stock Market (Nakamura & Tommi, 2012).
Research Design
This study will use a non-experimental, quantitative, connection research framework that facilitates the collection and the analysis of the existing information on the correlation of social responsibility and the profitability of industrial firms in NIKKEI Stock Market. This research is similar to the Tonosaki's model that describes the quantitative research methodology. There will be different criteria used which includes the use of indexing and selection of variables.
The quantitative research carried out in this study will be essential in linking the existing theories and data to the expected research objectives. According to Mackey and Gass (2015), this approach supports the adoption of different strategies when selecting a research sample. The prior research effect size will be used to determine the sample's size. Using an alpha of 0.05, a statistical power of 0.80 which is the minimum for the quantitative research and the estimated effect size of 0.15 the sample effect will be calculated to be 273. This rationale is drawn from the assumption that the identification of the association between corporate social obligation and economic output of industrial firms in Japan's NIKKEI Stock Market requires a lot of information. That said, the quantitative data collection approach will support the collection and the analysis of the adequate amount of information (Berger, 2015). The research begins by identifying the research sample, data collection and the analysis.
The research includes dependent and independent variables. The dependent variables are the company's financial performance and the independent variable is the corporate governance and HR utilization. Toyo Keizai evaluates corporate governance of the business by scoring the 34 items which include stakeholder engagement, evaluation of internal control and the standards and manual of ethics. Toyo Keizai also evaluates HR utilization of the companies by calculating 39 items which include the female employment ratio, the management policy on the policy for diversity and the employees' turnover among others. These variables have proven to have an influence on the company’s financial performance as they affect the quality of work life, the company’s image which in turn affects the profits of the company. Using this design for this research will ensure that the data collected is relevant and gives the most applicable information about the company (Filatotchev et al., 2013). All data used in this study is publically available and therefore will be in line with the privacy rules of the companies under the study.
Population and Sample Selection
The study is conducted in Japan where it examines the correlation between CSR and HR utilization to the monetary returns of the company. The total population of the study is the companies listed at NIKKEI Stock market and the target population includes industries in food, chemicals, construction, information &communication, retail and electric machinery. These industries are listed chronologically in the Toyo Keizai database. The industries are the six industries were considered because they are the most common and they interact with the society frequently.
The sampling method used for the study is the stratified random sampling where the different companies are divided into given industries. This method is best for this study because research has proven that it is the perfect method when the target is heterogeneous. The method makes it easy to collect data across the target population because after dividing the population into smaller groups, it will be easier to collect more specific information about the target population.
The samples that will be used for this population will be from companies that have been listed on the Japan's NIKKEI Stock Market. The study will randomly pick some companies from the six industries earlier stated and analyze the effect that the human resource utilization and the corporate governance have on the financial performance of the industrial firms listed in Japan’s NIKKEI Stock Market. The participants will be required to provide the information on their strategic plans on CSR from the years 2013 to 2015. The companies will also provide their financial information for those years. The data collected from the companies will be kept safe in a way that it will not harm the companies' competitiveness in the industry. This safety will be ensured by not disclosing the information that the companies have kept private. The information collected from the companies will also be protected by a server from the internet keeping the companies' private information safe (Filatotchev et al., 2013).
The research study intends to apply the central limit theorem (CLM) in determining the sample size. This is based on the awareness that CLM is a statistical and mathematical concept that explains the distribution of data. In fact, it contends that randomly selected samples are likely to present a more normal distribution when more samples are used. A more comprehensive definition of the theorem contends that for a random distribution that has a specified variance and mean, both the variance and mean will approach normal distribution with an increase in the sample size. The implication is that irrespective of what the original distribution will be and its skewed nature, it will always approach the normal distribution if the number of samples is increased. In addition, it shows that a normal distribution will definitely be arrived at with an increase in the number of samples (Johnson & Kuby, 2012).
It is important to note that the CLT assumes that the number of samples is as infinite as the whole population. This means that the number of scores that can be used to calculate the mean is infinite. For instance, if four researchers were engaged in different studies that used 1, 4, 7 and 10 sample sizes respectively from a uniform distribution and each one was subjected to 300 procedures, then it would be noted that the higher number of samples would produce more scores and a mean distribution that approached normal distribution. This awareness makes two things clear about the CLT. Firstly, the distribution of the mean approaches normal with an increase in the sample size, to indicate that higher sample size is more likely to present normal distribution. Secondly, there is reduced spread of distribution as the sample size increases, to imply that the distribution standard deviation reduces with an increase in the sample size (Ash, 2012).  
It is important to note that the unique properties of the CLT have important value to hypothesis testing. In this case, the null hypothesis assumes that the mean distribution is normal while the standard deviation can be chi squared. For that matter, it assumes that for a specified sample size described as n, its mean would be x while the mean for a normal distribution would be u, and the standard deviation be σ. Using critical regions and test statistic, it would be possible to either accept or reject the null hypothesis such that it is rejected if the test statistic is within the critical region and accepted if it is outside the critical region (Johnson & Kuby, 2012). As such, applying the concept of CLT justifies the use of all the available data (including information from the six industries that covers 1,305 firms after 3,580 firms had been contacted) to ensure that the collected data approaches normal distribution.
Instrumentation (Quantitative)
This research will use the quantitative methods to collect information. Structured observation will be one of the methods used to collect information on the target population. The first step in this method will be to define what needs to be observed and after that one can decide on how the observations will be made, recorded and coded. A category system will be developed and it will be used to organize the behavior of the events under observation (Berger, 2015). The information used for this study will be from Toyo Keizai Inc.
Archived data will also be essential for this study because through it, past information about the company that can be useful in the research will surface. The information obtained from Toyo Keizai Inc will reveal the past records of the connection that existed between the CSR and HR utilization of the company to its financial performance in the past. According to Bernard and Bernard (2012), this information will form the basis of the research but since it can implicate the companies, assurance of security of the information offered should be guaranteed.
Another quantitative method that will be used for this research will be interviews.  Structured interviews are more common with qualitative research but in this case they will be useful because the interview will be structured in a way that the interviewee will only chose one response from a series in the interview form. The interviewee can also be asked to pick an item from a list and this will help in getting the data quantitatively. Interviews will be applicable for this research because they will offer the perception of the interviewee which cannot be captured using any other method.
Questionnaires will also be useful in collecting data on the well-defined issues. In this research the questionnaires will be used to provide the data that can be easily analyzed and the unbiased response. The questions used in this quantitative data collection method will be closed questions because they will ensure that the data collected from them will be unbiased.
Physiological measurement is another sampling method that will be essential in collecting data in the research. This method will be important in determining the effect of CSR and HR utilization in the companies because it will engage the participants directly and observe their reaction to different questions and information about their respective companies. With these sampling methods, there will be reliable information that will be essential in conducting the study (Treiman, 2014).
Statistical Tools
The research study intends to use tables and figures as statistical tools for data presentation. That is because they depict changes that are then noted against a selected average, lower limit and upper limit calculated based on the collected data (Mudie & Pirrie, 2006). This implies that the tables and figures are evaluation tools that provide a visual presentation of changes.
Of unique importance in the statistical tools will be the occasions when peculiar patterns are shown. Five patterns will be of importance. Firstly, persistent or consistent data points will indicate that there are some peculiarities in the firms’ performance. Secondly, a sequential run of eight data points on the same side of the selected average, or as much as 80% of the data points being on the same side of the selected average. Thirdly, four successive data points being on the same side of the selected average and being more that one standard deviation from that average. Fourthly, two successive data points being on the same side of the selected average and being more that two standard deviations from that average. Finally, one of the data points being out of the control limit at more than three standard deviations away from the selected average to imply that it is either above the upper control limit or below the lower control limit (Kubiak & Benbow, 2009).
The peculiar patterns within the data points are the results of special cause variations, and are based on the awareness that a business industry will have common cause variations in every occasion thereby causing data points to be both above and below the average. For instance, an experienced manager making occasional management errors is considered as a common cause variation that does not result in out of control points, while an inexperienced manager causing numerous errors can be considered as a special cause of variation (Kubiak & Benbow, 2009; Morrow, 2012).
Data Validity
The validity of data is the range at which an instrument measures what it is expected to measure. It is rare for any instrument to give results that 100% valid and therefore validity is measured in degrees. To ensure the validity of the data collected in the research, the data will be subjected to statistical tests and measures of the instruments. In the validation, the time taken to administer the results of the measurements will be considered. The directions that are given to using the measurements will also be discussed and their clarity examined. Another critical examination factor will be the feedback of the people who have used the analysis before (Treiman, 2014).
When shaping the validity of the data, in this research, the external validity will show the level to which the outcomes of the study can be widespread from a model to a population. Given that a sample is a precise illustration of a population, the instrument that will be valid will be able to measure the degree of which a sample represents a population.
To ensure the validity of the data collected, the appropriateness of the instruments used should be placed into consideration. This involves determining whether the method of data collection assess the needed knowledge. In this research, the data that Toyo Keizai Database collected from the interviews, the physiological measures and the questionnaires will be evaluated to ensure that it is valid.
Reliability
Reliability is the consistency equitability of the measurements.  If a measurement is reliable, in the occurrence of a similar data collection procedure in the future, the same results will be found. In measuring the reliability of the instruments used to collect data in this research, the following estimators will be considered. First, measuring the observer reliability in the study will be used to determine the degree to which diverse observers give consistent estimates. Secondly, test-retest reliability will also be used to measure the constancy of a quantity evaluated over a given time.
Andrews and Herzberg (2012) explains that a third test that will be used to show the reliability of the data collected in the research is the parallel-Forms Reliability. This test will measure the reliability by examining two tests constructed in the same way and also from the same content. The internal consistency reliability will also show the consistency of results across the companies in the research.
Data Collection Procedure
The information that is on the NIKKEI Stock Market will be used in defining and forming a perspective on the research question. The Toyo Keizai Inc. database will also be used by the researchers to find the articles with the information on the companies that have been selected for the project. There are steps that will be followed in the data collection procedure. They include acquiring permission from respective firms to collect data, notification of the study partners, reviewing the articles, sample selections, data grouping, and privacy protection and guarantying the security of the data collected (Andrews & Herzberg, 2012).
The permission to use the information from the site will be requested from the Toyo Keizai Inc. database administrators. The conflict of interest position will also be declared before the research. In the case where the information will be requested from the company, the researchers will submit a formal request to acquire information and also avoid the use of confidential data. The companies that are participating in the research will be notified and the characteristics of information applied to the study will be clearly indicated to mitigate future conflicts and lawsuits. In the course of the notification, the respective companies will be assured that the data collected will only be used for the study. A review of the collected literature will be done in a sequential manner and they will begin with the earlier years to the most recent period. The review of the articles collected will include the study objectives, the research methodology used, the results, the conclusions and discussions with a focus on the possible position of the variables considered in this paper. The discussions will also be reviews based on whether the findings indicate a correlation or otherwise to inform subsequent steps in the present study (Park & Shaw, 2013).
The data will be collected in different ways that will be motivated by the variables of interest. These groups will include the year, the industry category, the direction of the results and the challenges that will be faced in the data collection process. The privacy protection will be guaranteed; concealing the information on the companies' strategic approaches to CSR and corporate governance. The financial information and performance that the company has not publicized will also be excluded from the published data to protect the company. In addition, the information that will be collected and not shared will be protected using different internet and network security approaches. These protection layers that will be introduced will seek to reduce the possible unauthorized access to data and information collected which has the power of comprising the competitiveness or operations of the companies that are involved in the study (Park & Shaw, 2013).
After guarantying the safety of the data collected, the researchers will collect the data from the company's archives. This will include the published and unpublished information about the company. The data collected will be from the year 2013 to the year 2015. The questionnaires will be given to the company's stakeholders, and they will contain closed questions which will not be having a lead to avoid biases of the data. Also, interviews with the researchers and the company's managers will be conducted. The data collected will place the researchers in a good place to analyze it.  
Overall, the data collection approach is based on convenience sampling whereby the data provided by Toyo Keizai was considered appropriate for the research. The choice of data source is based on the need to access a large number of companies. Currently, Toyo Keizai includes a survey that covers 1,305 firms (listed 1,259, non-listed 46) from which they received the responses on survey slips which were distributed to 3,580 listed firms and non-listed major firms. Among the listed firms, the industries including over 200 firms in the large category by the Securities Identification Code Committee have been selected (Construction, Foods, Chemical, Electric Machinery, Information & Communication, retail). The information provided by Toyo Keizai’s survey provided enough information to inform the research results.
Data Analysis Procedures
The data collected will be first identified with the level of measurements associated that are connected with the quantitative data. This is because the level of measurement will determine the type of analysis that will be applicable. The method of measurement that have been used by the Toyo Keizai Inc. has a continuous, consistent data with a neutral zero. As earlier stated, all data used for this research can be publicly available at Toyo Keizai Inc.
The data collected in this study will be analyzed using Statistical Package for Social Science (SPSS). It will assess the association between the social obligation and the financial returns of the industrial firms in NIKKEI Stock market. The financial returns for a company can vary because of the size of the company and the kind of business conducted in the company. After collecting the information, it will be analyzed by statistical tests which will include a test for normality and a correlation analysis The data on the financial performance of the company will be given the following ratings AAA, AA, A, B and C. The figures given to each are: AAA=5, AA=4, A=3, B=2, C=1 and invaluable =0.
The data will be evaluated based on its CSR information. The evaluation is done by Toyo Keizai using the principal component analysis technique of multivariate statistics in the field of HR utilization, corporate governance, environment and sociality. This analysis will be utilized in the study and the four items were assigned the following ratings: AAA, AA, A, B and C. The figures allocated to each are: AAA=5, AA=4, A=3, B=2, C=1 and invaluable =0. The independent variables in the study are corporate governance and HR utilization while the dependent variable is the firm's financial returns. These variables will be analyzed using correlation, variance and regression (Csikszentmihalyi & Larson, 2014).
Correlation is a calculation which is statistical in nature and its aim is to describe the nature of the affiliation between two variables. When using correlation to analyze the data collected in this study, it is important to note that correlation does not explain causation. It only indicates that connection or a pattern exists but it does not mean that one variable is affecting the other.
Analyzing the data by variance will assist in examining if the difference in the averages of the data for two given groups is significant. In this case, a study of variance will help in determining if the monetary returns of the companies that participated in social work and other non-profitable ventures are significantly difference from those who did not participate in the activities (Csikszentmihalyi & Larson, 2014).
Regression is an extension of correlation and it is used in determining if one variable can be a predictor of another variable. In this study, the regression observed will ascertain the strength of the relationship between the intrusion and the outcome variables. It will also determine if one variable, for example, the corporate governance is a significant statistical predictor of the outcome of another variable like the engagement of the company in social responsibility. The method used in analyzing this data will be in line with the research design as the research design of this study seeks to establish the correlation between the dependent and the independent variables (Andrews & Herzberg, 2012).
Ethical Considerations
The researchers will follow ethical guidelines when conducting this study. First, the data will be collected using ethical means. All data obtained in the research will be contained from the companies participating in the research and legal forms. The researchers will respect the decision of the companies to withhold certain information. In addition, the researchers will notify the company of all information that is obtained from other sources other the company. This will enable the company to verify if the information contained in those sources is accurate and will not compromise the position of the company (Nakamura &Tommi, 2012).
When collecting the data, the researchers will not interrupt on the usual schedule of the companies. The researchers should, therefore, consult the business on the best time to collect data and avail themselves. The data obtained from the research will only be used for the study and it will be used in the original form. There will be no editions or duplications done by the researchers and the data will be kept securely. The data will be obtained in a confidential way and the anonymity will be assured by not disclosing the individual names of the interviewees and by using the data that has been authorized by the company.
If in the course of the study the researchers have collected private information or came across private information concerning the company and its stakeholders, they will treat the information with the privacy required. The information will not be disclosed to a third party and the researchers will only publish the public information. In addition, the ethical guidelines provide that the researchers should not use the information that will compromise the competitiveness of the company.
Limitations
Like other studies, there will be several limitations that are bound to be experienced when conducting this research. The limitations may occur because of the nature of the companies that should be studied. The limitations are expected in different phases of the research and they include
Reluctance by the company to share information with the researchers.
Lack of support and cooperation from the enterprises involved when collecting information.
Different nature of the company that will result in inconsistency to the data collected.
Lack of information from some selected companies.
Time limitation due to a significant amount of information that needs to be processed.
Inadequate resources to use in the analyzing of the collected data.
The assumptions made in the study may cause discrepancies in data and the information.
Summary
This chapter is a combination of chapter one and chapter two in which it explains the way the data is collected and analyzed. It also explains the nature of CSR in six industries that have been listed in the Japan's NIKKEI Stock Market. The background of the study describes the content of the paper and it develops the overall goal of this chapter. The purpose statement and the problem statement have been included and they describe more specifically what this chapter hopes to achieve.
The research methodology and design included in the paper explains how the study will be carried out. A description of how data will be collected and analyzed has also been included, explaining how the researchers will include the reliability and the validity of the data collected. The chapter has concluded with the ethical considerations and the limitations faced when conducting the study. The following chapters will discuss the relationship between the CSR and the human resource utilization with the financial performance of the shortlisted companies.

CHAPTER 4: RESULTS AND DATA ANALYSIS
Introduction
The chapter will analyse the data collected by the researcher from various primary and secondary sources. Ideally, the study revolves around examining the manner in which CSR influences and determines the success, competitive advantages and productivity of industrial enterprises in the Japan's NIKKEI Stock Market (Barsky, Hussein & Jablonsky, 2014). Therefore, the chapter will use the collected financial results on the identified industries to facilitate the comparison benefits of the corporate governance in the identified business entities (Beck et al., 2013). The chapter will also represent variables using A & B concepts. The concept A in the data analysis process will represent the independent variables in the research paper. On the contrary, the concept B will represent the dependent variables. The understanding independent and dependent variables will help the research respond to the research question. The chapter indicates that the independent variables are corporate governance and Human Resource utilization (Barsky, Hussein & Jablonsky, 2014).
The chapter will evaluate information collected from companies listed in NIKKEI Stock Market.  Effective analysis of all the necessary data will be significant in identifying benefits of the research in the marketing and business management field (Boon & Boone, 2012). Precisely, the Toyo Keizai Inc. database will be essential in supporting the analysis of the data about corporate governance for Japanese firms.  The researcher has also gathered notable level of information from the Toyo Keizai Inc. database. The Toyo Keizai Inc. database contains essential financial information about the company and its development and growth process (Boon & Boone, 2012). Therefore, the database is essential in analysis and understanding the manner in which corporate governance influences the success and productivity of industrial enterprises in the contemporary competitive Japan's NIKKEI Stock Market (Barsky, Hussein & Jablonsky, 2014).  
The data analysis process will also be critical in understanding the presented information on the significant information presenting the relationship and connection between corporate governance and human resource on the companies’ economic and financial performance and progress (Barsky, Hussein & Jablonsky, 2014). The chapter also focuses on identifying the specific and general views and perspectives on the implications and benefits of corporate governance on the financial and economic outcomes of companies and business entities that undertake their operations and activities in the Japan's NIKKEI Stock Market (Boone & Boone, 2012).  
Approaches to Results and Data Analysis
The understanding of the implications and benefits of corporate governance on the financial and economic outcomes of companies and business entities that undertake their operations and activities in the Japan's NIKKEI Stock Market will be relatively significant in enhancing the formulation of sustainable and competitive operations and management plans (Braguglia & Jackson, 2012). As a result, the researcher will rely on the collected information to integrate to all the collected empirical data that will support the understanding of the contribution and roles played by human resource utilization and corporate governance on the financial performance of all business entities listed on the NIKKEI Stock MARKET and other global markets.  As a result, the analysis will be relatively significant in enhancing the testing of the research hypothesis. Equally, effective use and analysis of the collected data will respond to the research question (Braguglia & Jackson, 2012).
The data analysis will also focus on responding to the research questions. Some of the essential research questions included the understanding of the relationship between corporate governance and the firm's financial performance of the industrial companies in Japan's NIKKEI Stock Market (Braguglia & Jackson, 2012). The analysis will also be critical in responding to the question on the relationship between HR utilization and firm financial performance of industrial firms in Japan’s NIKKEI Stock Market.
The analysis also helps to highlight the differences between the study and other existing literature in the academic and business sectors.  Based on the presented data, the   gather information from the current study is relatively different and detailed as compared to previous studies (Brearton, 2015). The study provides specific and broad variables on CSR and the corporate performance among companies listed in the Japan’s NIKKEI Stock Market. Modern scholars further affirm that the existing studies fail to provide adequate information on CSR in Japan’s NIKKEI Stock and other popular global markets. In most instances, corporate governance supports the overall efficiency of businesses that conduct their operations in the NIKKEI market.  Therefore, the research findings provide detailed statistical and numerical data on the relationship between CG and monetary gains. The accessible data also indicates that the existing literature on the Japan’s NIKKEI Stock Market do not provide detailed analysis of the implications of good governance and financial contribution to the business success and productivity (Beck et al., 2013).
However, the study has the necessary research findings on the implications of good governance and financial contribution. As a result, detailed analysis of the collected data will be significant in enriching the already existing stock of knowledge.  Furthermore, the accessible data fails to provide credible empirical data on the relationship between corporate social responsibilities in human resource practices and the resultant profitability (Brearton, 2015). However, the research findings also indicate that the understanding of the relationship between CSR in human resource practices and the resultant profitability reduces the cost of attaining the shareholders’ immediate and long-term needs and interests (Beck et al., 2013).  Therefore, based on the identified setbacks, the analysis of the collected data will be critical in supporting the understanding of CSR and financial performance of businesses in Japan’s NIKKEI Stock Market.
 The understanding and effective application of the sustainable research design and methodology will help the researcher make effective analysis of the collected empirical data. Ideally, the project relies on the quantitative research method to determine and understand the significant of the Corporate Governance and the HR practices on the financial performance of the Japanese Companies listed on the NIKKEI Stock Market.  The use of quantitative research approach is significant since it requires a limited amount of human and capital resources and data collection period (Beck et al., 2013).  The approach also support reliable generalisation of the collected information. Therefore, effective application of the approach has proved to be relatively significant in supporting the collection and analysis of reliable and adequate information. The analysis also relies on the quantitative data collection method to facilitate the analysis and testing the research theories and hypothesis. The quantitative data collection strategy supports the collection of a huge and reliable volume of data from both primary and secondary sources of information (Brearton, 2015). The plan also facilitates the collection and analysis of numerical information from difference sources. However, although the quantitative approach has proved to be relatively effective in supporting the data analysis process, the initiative has some regrettable setbacks.  First, the quantitative research approach requires the use of limited numbers of assumptions and variables (Beck et al., 2013). However, the use of limited numbers of assumptions and variables can be ineffective in linking the relationship between CSR and firm financial performance of industrial firms in Japan's NIKKEI Stock Market (Crowther & Aras, 2008).  Therefore, to address the setback the research could have considered alternative data collection strategies such as mixed data collection approach and qualitative data collection approaches. In most instances, mixed data collection approach and qualitative data collection approach provide adequate information that enhances the data analysis process (Beck et al., 2013).
The data analysis will also rely on the existing integration and connection research framework, non-experimental, and quantitative methods to that facilitates the collection and the analysis of the existing empirical information on the correlation of governance and the profitability of industrial firms in NIKKEI Stock Market (Dumay & Cai, 2015).  Therefore, the use of Tonosaki’s model in the data analysis process will be significant in supporting the description of the quantitative research methodology.  Effective utilisation of different criteria such as indexing and selection of variables will also support the identification of credible data that will enhance the analysis processes (Beck et al., 2013). The quantitative research will also play a notable and reliable role in linking the existing theories and data to the expected research goals and objectives. The understanding of the research design also enhances the adoption of different and reliable strategies to support the identification respondents that provide the most reliable information to support the research outcomes (Beck et al., 2013). Therefore, the effective use of an alpha of 0.05, a statistical power of 0.80 which is the minimum for the quantitative research and the estimated effect size of 0.15 the sample effect will be calculated to be 273. While the expected sample size was 273, 443 companies were reviewed in 2013, 487 companies in 2014 and 522 companies in 2015 for a total of 1452 companies reviewed over the three years period. The difference was occasioned by the nature of the data source since the companies were from the industrial firms listed in Japan’s NIKKEI stock market. The analysis will support the rationale of drawing the data from the assumption that the identification of the association between corporate social obligation and economic output of industrial firms in Japan's NIKKEI Stock Market requires huge amount empirical and statistical data. The quantitative data collection approach will also enhance the analysis of the adequate amount of information (Gangi & Trotta, 2015). Therefore, the data analysis will support the affirmation of the research sample, data collection, and the analysis. The understanding of dependent and independent variables will also enhance the analysis of the research numerical data.  So far, the research dependent variables are the company's financial performance and the independent variable is the corporate governance and HR utilization (Beck et al., 2013). Therefore, the analysis will analyse the corporate governance of the business by scoring the 34 items that include stakeholder engagement, evaluation of internal control and the standards and manual of ethics. The analysis will also  use of HR utilization of the companies by calculating 39 items which include the female employment ratio, the management policy on the policy for diversity and the employees' turnover among others.  Currently, the accessible literature review indicates that the research variable variables have an influence on the company’s financial performance as they affect the quality of work life, the company’s image that in turn affects the profits of the company (Beck et al., 2013).  Therefore, the use of the quantitative research design will ensure that the data collected is relevant and provide the most applicable and reliable data and information about the companies’ position in local and global markets. The use of information and data that are available in the public will also affirm the credibility of the research outcome (Hillman & Keim, 2001).  
Therefore, the data analysis will use the collected information to understand and establish the relationship between corporate governance and firm financial performance of industrial firms in Japan’s NIKKEI Stock Market (Beck et al., 2013). The analysis will also identify the relationship between corporate governance and firm financial performance of industrial firms in Japan’s NIKKEI Stock Market by applying the advanced theoretical knowledge and methodology analyse quantitative research data from existing organizations and other external sources.  The effective use of the theoretical frameworks in the data analysis process will provide adequate information on the implication of a company's corporate governance on the businesses financial output activities and strategies (Beck et al., 2013). Therefore, the analysis main objective is to use the existing and the collected data to understand whether businesses are profitable with improved management culture. The effective analysis of the collected data will also help to establish the association between HR utilization and the monetary returns of industrial firms in Japan’s NIKKEI Stock Market (McKinley, 2014).  Therefore, the analysis of previous researcher and scholars’ views will be significant in enhancing the deeper understanding of the HR impacts on organizations’ performance.  Effective application of the identified theories and conceptual will also support the understanding of the research findings (Beck et al., 2013). The conceptual framework will also facilitate the deeper understanding of the expected outcome of the research process.  
Descriptive Data
Sample population
The research sample was relatively significant in supporting the collection of adequate and reliable data and information to respond to the research questions. As a result, the researcher engaged in intensive surveys and academic research to understand and identify the most effective means and approach to identify the research sample. Literature review on sampling process and benefits was relatively important in supporting the identification of the most effective strategy to sample the research population (Beck et al., 2013). The consideration of other critical factors such as the resources, the research goals, study scope, ethical issues, and the time available for the study was also significant in enhancing the identification of reliable research outcomes (Molina, Clemente & Rubio, 2013).  Modern scholars confirms that the identification of the most reliable research sample support the credibility of the research outcomes. As a result, the researcher undertook the research in the Japanese NIKKEI Stock market.  The identification of Japanese NIKKEI Stock market revolved around the competitive nature of the market as compared to other global sectors (Beck et al., 2013).  Besides, as compared to other global markets, Japan was significant in supporting the examination of the correlation between CSR and HR utilization to the monetary returns of the company.  
The researcher also relied on a relatively sizeable and manageable number of the research sample. Consequently, the total population of the study sample was the adequate and attainable number of companies listed at NIKKEI Stock market. The research specific target industries were food, electric machinery chemicals, information &communication, construction, information &communication, and retail sector (Mukhopadhyay & Gupta, 2014).  In most instances, industries are listed chronologically in the Toyo Keizai database. As a result, the process of identifying the research sample was relatively simple. Besides, Toyo Keizai database have a notable benefits in supporting the identification of the market operations and strategies.  Therefore, the act of considering six popular industries revolves around the need to collect reliable information that could adequately respond to the research question. The six popular industries also enhanced the gathering of adequate amount of information.
Therefore, although there are numerous strategies for identifying the research sample, the researcher adopted the stratified random sampling. The stratified random sampling supported the division and integration of different companies in a particular industry. The division and integration of different industries reduced the process of undertaking the research (Perdomo & Escobar, 2011).  The stratified random sampling was also significant in granting all companies an equal opportunity to participate in the study. The plan also ensured that the researcher collected information from credible sources in the Toyo Keizai data. Besides, the approach supported the identification of the most appropriate and reliable sources of information. Therefore, based on the accessible data the stratified random sampling is the most relevant approach since it has proven to be perfect and most reliable strategy and method that can target heterogeneous (Beck et al., 2013). The stratified random sampling also reduces the process and challenges that emerge during the collection and analysis of information and data from varying target population. The approach also supports the division of the research population into manageable and smaller groups.  For instance, the research had limited time and resources to undertake and analyse the research findings (Beck et al., 2013). As a result, the researcher required a manageable sample that can respond to the research problem. Therefore, the stratified random sampling supported the collection of research data from the required population.
The research also uses stratified random sampling strategy to gather and analyse specific information from the target population (Beck et al., 2013). Precisely, the strategy supports the gathering of reliable information on the target population’s operational strategies. In most instances, the understanding of the target population’s marketing and operation plans is significant in supporting the understanding of the study’s topic. Therefore, the research relies on information from companies that are listed on the Japan's NIKKEI Stock Market. Ideally, companies listed in the Japan's NIKKEI Stock Market are the most productive firms the Japanese market. The companies also have detailed information in the social corporate governance strategies and expansion plans (Priyanka, 2013).  
Therefore, in the data analysis stage the researcher randomly identify gathered information from some companies from the six identified industries.  The analysis of the information gathered from the identified samples support the understanding of effects and implications of human resource utilization and CG on the FP of the industrial firms listed in Japan’s NIKKEI Stock Market (Reverte, 2009).  Software analysis using SPSS was also conducted for the information acquired from participants on their innovative and strategic plans on CSR from the years 2013 to 2015. The researcher also analyse information collected on the companies’ financial information and performance in the last two years. The researcher also has the mandate to protect the privacy of the collected and analysed data (Beck et al., 2013). The protection of the privacy of the collected data will be significant in reducing the possibilities of unnecessary ethical issues. In most instances, researchers have ethical duties to protect the privacy of the gathered information. Researchers also have the role of acquiring information from respondents on the most effective means to protect the collected information (Beck et al., 2013). Therefore, the assurance of the maximum level of security on private information will advance participants’ confidence and ability to participate in the research. The identification of the most reliable sampling strategies is also significant in supporting the gathering of credible data from the research sample (Robson & McCartan, 2016).  The collection of adequate information from the identified research sample also enhances the applicability of the research findings.  
Graphic organizers are a crucial component in the tabulation of coded data from a research study. The graphics include features such as Histograms, charts, graphs, and tables. The researcher presents the tabulation of the data on the influence of Corporate Governance (CG) and Human Resource Practices (HRP) on the Financial Performance (FP) of the Japanese industries in the stock market through tables and graphs (Tanaka, 2015). The graphics also enable other individuals to gather in-depth insights on a study’s crucial finding and results (Beck et al., 2013). The graphics also help in postulating the existing relationship between the study variables. Therefore, graphics are essential in the presentation of research data on the investigation of a particular phenomenon.
Initial results analysis indicates that with regards to the case summaries, 443 companies were reviewed in 2013, 487 companies in 2014 and 522 companies in 2015 for a total of 1452 companies reviewed over the three years period (see Table 2).
Table 2. Case summaries
 
Year    Type of Industry    HR Utilization    Corporate governance    CSR Total    Financial performance Total       
2013    Chemicals    72    72    72    72       
     Construction    50    50    50    50       
     Electric Machinery    104    104    104    104       
     Foods    49    49    49    49       
     Information & Communication    79    79    79    79       
     Retail    89    89    89    89       
     Total    443    443    443    443       
2014    Chemicals    85    85    85    85       
     Construction    58    58    58    58       
     Electric Machinery    108    108    108    108       
     Foods    49    49    49    49       
     Information & Communication    85    85    85    85       
     Retail    102    102    102    102       
     Total    487    487    487    487       
2015    Chemicals    96    96    96    96       
     Construction    61    61    61    61       
     Electric Machinery    111    111    111    111       
     Foods    50    50    50    50       
     Information & Communication    98    98    98    98       
     Retail    106    106    106    106       
     Total    522    522    522    522       
Totals    Chemicals    253    253    253    253       
     Construction    169    169    169    169       
     Electric Machinery    323    323    323    323       
     Foods    148    148    148    148       
     Information & Communication    262    262    262    262       
     Retail    297    297    297    297       
     Total    1452    1452    1452    1452    

Additional analysis of the results reveals that in 2013, the chemical industry reported a CSR total mean of 13.94 (Std. Dev. = 4.531, n=72) that was slightly lower than the mean for the financial performance total of 13.99 (Std. Dev. = 4.329, n=72), but higher than the mean for the corporate governance at 3.43 (Std. Dev. = 1.372, n=72) and human resources utilization at 3.46 (Std. Dev. = 1.404, n=72). The information and communication industry presented comparable results whereby the CSR total mean was reported at 10.13 (Std. Dev. = 4.936, n=79) that was lower than the mean for the financial performance total of 12.8 (Std. Dev. = 3.447, n=79), but higher than the mean for the corporate governance at 2.67 (Std. Dev. = 1.337, n=79) and human resources utilization at 2.78 (Std. Dev. = 1.465, n=79). The same trend was noted for the retail industry whereby the CSR total mean was reported at 9.66 (Std. Dev. = 4.822, n=89) that was lower than the mean for the financial performance total of 11.93 (Std. Dev. = 3.313, n=89), but higher than the mean for the corporate governance at 2.52 (Std. Dev. = 1.478, n=89) and human resources utilization at 2.39 (Std. Dev. = 1.459, n=89). In contrast, the construction industry reported a CSR total mean of 13.44 (Std. Dev. = 4.321, n=50) that was higher than the mean for the financial performance total of 11.64 (Std. Dev. = 2.38, n=50), but higher than the mean for the corporate governance at 3.44 (Std. Dev. = 1.264, n=50) and human resources utilization at 2.98 (Std. Dev. = 1.407, n=50). Similar results are noted in the electric machinery industry where a CSR total mean of 15.02 (Std. Dev. = 6.834, n=104) that was higher than the mean for the financial performance total of 12.68 (Std. Dev. = 3.227, n=104), but higher than the mean for the corporate governance at 3.46 (Std. Dev. = 1.434, n=104) and human resources utilization at 3.89 (Std. Dev. = 5.057, n=104). The food industry reported CSR results that were close to the financial performance totals such that the CSR total mean was 13.61 (Std. Dev. = 5.09, n=49) making it slightly higher than the mean for the financial performance total of 13.51 (Std. Dev. = 2.551, n=49), but higher than the mean for the corporate governance at 3.24 (Std. Dev. = 1.507, n=49) and human resources utilization at 3.31 (Std. Dev. = 1.517, n=49) (see Appendix V).
The results noted for 2014 reveals that the chemical industry reported a CSR total mean of 12.76 (Std. Dev. = 5.808, n=85) that was slightly lower than the mean for the financial performance total of 13.32 (Std. Dev. = 2.85, n=85), but higher than the mean for the corporate governance at 3.09 (Std. Dev. = 1.548, n=85) and human resources utilization at 3.22 (Std. Dev. = 1.499, n=85). The information and communication industry presented comparable results whereby the CSR total mean was reported at 10.16 (Std. Dev. = 5.042, n=85) that was lower than the mean for the financial performance total of 12.6 (Std. Dev. = 3.787, n=85), but higher than the mean for the corporate governance at 2.52 (Std. Dev. = 1.377, n=85) and human resources utilization at 2.81 (Std. Dev. = 1.418, n=85). The same trend was noted for the retail industry whereby the CSR total mean was reported at 8.82 (Std. Dev. = 5.532, n=102) that was lower than the mean for the financial performance total of 11.54 (Std. Dev. = 3.226, n=102), but higher than the mean for the corporate governance at 2.13 (Std. Dev. = 1.474, n=102) and human resources utilization at 2.32 (Std. Dev. = 1.504, n=102). In contrast, the construction industry reported a CSR total mean of 11.59 (Std. Dev. = 6.224, n=58) that was slightly higher than the mean for the financial performance total of 11 (Std. Dev. = 3.377, n=58), but higher than the mean for the corporate governance at 2.81 (Std. Dev. = 1.616, n=58) and human resources utilization at 2.69 (Std. Dev. = 1.524, n=58). Similar results are noted in the electric machinery industry where a CSR total mean of 13.52 (Std. Dev. = 5.889, n=108) that was higher than the mean for the financial performance total of 12.69 (Std. Dev. = 3.49, n=108), and even higher than the mean for the corporate governance at 3.22 (Std. Dev. = 1.487, n=108) and human resources utilization at 3.33 (Std. Dev. = 1.516, n=108). The food industry reported CSR results that were than the financial performance totals such that the CSR total mean was 13.31 (Std. Dev. = 5.774, n=49) making it slightly higher than the mean for the financial performance total of 12.67 (Std. Dev. = 2.672, n=49), and even higher than the mean for the corporate governance at 3.2 (Std. Dev. = 1.486, n=49) and human resources utilization at 3.39 (Std. Dev. = 1.497, n=49) (see Appendix VI).
Analysis of the results reveals that in 2015, the chemical industry reported a CSR total mean of 11.53 (Std. Dev. = 6.853, n=96) that was lower than the mean for the financial performance total of 12.98 (Std. Dev. = 2.92, n=96), but higher than the mean for the corporate governance at 2.8 (Std. Dev. = 1.769, n=96) and human resources utilization at 2.9 (Std. Dev. = 1.75, n=96). The information and communication industry presented comparable results whereby the CSR total mean was reported at 8.81 (Std. Dev. = 6.129, n=98) that was lower than the mean for the financial performance total of 12.81 (Std. Dev. = 3.525, n=98), but higher than the mean for the corporate governance at 2.2 (Std. Dev. = 1.631, n=98) and human resources utilization at 2.4 (Std. Dev. = 1.673, n=98). The same trend was noted for the retail industry whereby the CSR total mean was reported at 7.95 (Std. Dev. = 6.037, n=106) that was lower than the mean for the financial performance total of 11.65 (Std. Dev. = 3.289, n=106), but higher than the mean for the corporate governance at 1.94 (Std. Dev. = 1.566, n=106) and human resources utilization at 2.08 (Std. Dev. = 1.683, n=106). The construction industry reported a CSR total mean of 10.66 (Std. Dev. = 6.77, n=61) that was lower than the mean for the financial performance total of 12.25 (Std. Dev. = 2.981, n=61), but higher than the mean for the corporate governance at 2.7 (Std. Dev. = 1.801, n=61) and human resources utilization at 2.38 (Std. Dev. = 1.604, n=61). Contrasting results are noted in the electric machinery industry where a CSR total mean of 13.69 (Std. Dev. = 5.657, n=111) that was higher than the mean for the financial performance total of 12.6 (Std. Dev. = 3.776, n=111), but higher than the mean for the corporate governance at 3.23 (Std. Dev. = 1.5458, n=111) and human resources utilization at 3.36 (Std. Dev. = 1.404, n=72). The food industry reported CSR results that were close to the financial performance totals such that the CSR total mean was 12.7 (Std. Dev. = 6.172, n=50) making it slightly lower than the mean for the financial performance total of 12.72 (Std. Dev. = 2.814, n=50), but higher than the mean for the corporate governance at 3.04 (Std. Dev. = 1.564, n=50) and human resources utilization at 3.18 (Std. Dev. = 1.65, n=50) (see Appendix VII). The results make it clear that although there may be some link between corporate governance, CSR and financial performance, that link varies dependent on the specific industry.
The results were further subjected to modeling that sought to determine whether or not the relationship between human resource utilization, corporate governance, CSR and financial performance could be modelled. The modeling presented a correlation coefficient of 0.125 to indicate that human resource utilization, corporate governance and CSR totals could be used to predict financial performance totals. In fact, Figure 1 shows the individual data points and their distribution (see Tables 3 & 4; Figures 1 & 2).

Table 3. Model fit for the relationship between human resource utilization, corporate governance, CSR as the independent variable and financial performance as the dependent variable
 
Fit Statistic    Mean    Minimum    Maximum    Percentile       
                    5    10    25    50    75    90    95       
Stationary R-squared    .125    .125    .125    .125    .125    .125    .125    .125    .125    .125       
R-squared    .125    .125    .125    .125    .125    .125    .125    .125    .125    .125       
RMSE    3. 084    3. 084    3. 084    3. 084    3. 084    3. 084    3. 084    3. 084    3. 084    3. 084       
MAPE    23.492    23.492    23.492    23.492    23.492    23.492    23.492    23.492    23.492    23.492       
MaxAPE    315.735    315.735    315.735    315.735    315.735    315.735    315.735    315.735    315.735    315.735       
MAE    2.461    2.461    2.461    2.461    2.461    2.461    2.461    2.461    2.461    2.461       
MaxAE    10.657    10.657    10.657    10.657    10.657    10.657    10.657    10.657    10.657    10.657       
Normalized BIC    2.287    2.287    2.287    2.287    2.287    2.287    2.287    2.287    2.287    2.287    


Table 4. Model statistics for the relationship between human resource utilization, corporate governance, CSR as the independent variable and financial performance as the dependent variable
 
Model    Number of Predictors    Model Fit statistics    Ljung-Box Q(18)    Number of Outliers       
          R-squared    Statistics    DF    Sig.            
Financial performance Total-Model_1    2    .125    20.424    16    .202    0    



 
Figure 1. Visual presentation of the relationship between human resource utilization, corporate governance, CSR as the independent variable and financial performance as the dependent variable
 
Figure 2. Model summary relationship between human resource utilization, corporate governance, CSR as the independent variable and financial performance as the dependent variable
The computations indicate that corporate governance and human resource practices are crucial elements that support to the financial performance of the Japanese construction industries in the stock market. The relationship is seen in the correlation calculations. Ideally, corporate governance revolves around the adoption of suitable policies that enhance the proficient utilization of an organization’s resource towards the set objectives (Beck et al., 2013). Corporate Governance also facilitates the creation and development of teamwork within an organization’s workforce thus sustaining the firm’s impressive performance in the global market (Beck et al., 2013). Human Resource practices are also an essential element that leads to a firm’s sustainability and dominance in the stock market. The adoption of appropriate practices in corporate governance and human resources practices has led to significant correlation between CSR and financial performance as seen in the model presented in Tables 3 and 4. The correlation coefficient determined at 0.125 indicates that CG and HRP practices within firms influence the monetary performance (Vicente, Fátima de & Felipe Cortes, 2011). Consequently, managers should embrace suitable policies in CG and HRP to enhance their companies’ financial performance and survival in the stock market (Beck et al., 2013). The correlation further reveals that the managers in the construction sector should formulate stronger policies in CG and HRP to support growth in the financial performance within the NIKKEI stock market.
Behavior analysts further reveal that suitable and realistic HR practices lead to the motivation of the employees thus sustaining a firm’s competitive edge. The adoption of proficient HRP practices also leads to the sustainment of the employees’ social needs thus leading to the generation of new and distinct ideas that lead to the impressive performance of a firm in the stock market (Vicente, Fátima de & Felipe Cortes, 2011). Suitable practices in corporate governance and human resource instills confidence among investors to buy the stock from the industries. However, the management should undertake a need assessment to identify the areas that require change to facilitate a high correlation between the monetary performance and HRP in the Japanese industries in the stock market. The evaluation reveals the adoption of the appropriate corporate governance techniques, HR practices, and the financial performance leads to the success of the Japanese industries (Beck et al., 2013).
The modelling results reveal that the adoption of proficient CG and HRP approaches highly influences the financial performance of a particular industry in the stock market. In most instances, corporate governance revolves around the formulation of appropriate approaches to motivate the stakeholders within an organization towards sustaining the set strategic plan (Vicente, Fátima de & Felipe Cortes, 2011). Corporate governance also ensures that a particular firm embraces the appropriate techniques that enable the organization to address the emerging changes in the market dynamics. Human resource practices are also essential towards sustaining an organization’s financial performance (Vicente, Fátima de & Felipe Cortes, 2011). The practices ensure that an organization’s employees have a high morale towards achieving the set organizational objectives. The proficient intertwining of corporate governance and human resource practices also leads to the creation of a constructive working arena leading to the increase in operational results (Beck et al., 2013). The graphics affirm that efficient intertwining of the two elements is a key factor that has led to the impressive monetary performance of the diverse array of Japanese industries in the NIKKEI stock market.
Confirmatory Factor Analysis (CFA)
CFA has been conducted by performing chi-square tests then dividing the results by the degree of freedom. The basis on which the test is performed is that: CSR is a major determinant of financial performance. A measure of chi-square result divided by the degree of freedom gives us a figure that determines the goodness of fit. Figures of less than 3 show good fit, those between 3 and 5 show permissible fit while those greater than 5 show no fit. All the calculated figures are less than 3, with the information and communication industry presenting the lowest goodness of fit figure at 1.1211 while the food industry presents the highest goodness of fit figure at 1.5667 (see Table 5). This makes it clear that increasing CSR results in an increase in financial performance, with the reverse being equally true.
Table 5. Chi-square test results
 
Type of Industry        Value    df    Asymp. Sig. (2-sided)    Goodness of Fit (value/df)       
Chemicals    Pearson Chi-Square    302.341a    224    .000    1.3497       
     Likelihood Ratio    260.413    224    .048           
     Linear-by-Linear Association    50.837    1    .000           
     N of Valid Cases    253                   
Construction    Pearson Chi-Square    303.386b    247    .008    1.2283       
     Likelihood Ratio    239.612    247    .620           
     Linear-by-Linear Association    14.256    1    .000           
     N of Valid Cases    169                   
Electric Machinery    Pearson Chi-Square    507.620c    324    .000    1.5667       
     Likelihood Ratio    306.614    324    .748           
     Linear-by-Linear Association    12.481    1    .000           
     N of Valid Cases    323                   
Foods    Pearson Chi-Square    391.507d    255    .000    1.5353       
     Likelihood Ratio    242.912    255    .696           
     Linear-by-Linear Association    30.532    1    .000           
     N of Valid Cases    148                   
Information & Communication    Pearson Chi-Square    403.590e    360    .056    1.1211       
     Likelihood Ratio    309.940    360    .973           
     Linear-by-Linear Association    28.205    1    .000           
     N of Valid Cases    262                   
Retail    Pearson Chi-Square    508.103f    340    .000    1.4956       
     Likelihood Ratio    330.503    340    .634           
     Linear-by-Linear Association    22.644    1    .000           
     N of Valid Cases    297                   
Total    Pearson Chi-Square    785.670g    378    .000    2.0785       
     Likelihood Ratio    622.732    378    .000           
     Linear-by-Linear Association    148.378    1    .000           
     N of Valid Cases    1452                   
a. 254 cells (99.6%) have expected count less than 5. The minimum expected count is .01.
b. 280 cells (100.0%) have expected count less than 5. The minimum expected count is .01.
c. 358 cells (99.2%) have expected count less than 5. The minimum expected count is .00.
d. 288 cells (100.0%) have expected count less than 5. The minimum expected count is .01.
e. 399 cells (100.0%) have expected count less than 5. The minimum expected count is .01.
f. 373 cells (98.7%) have expected count less than 5. The minimum expected count is .00.
g. 302 cells (72.2%) have expected count less than 5. The minimum expected count is .00.    

Evaluating the Data Analysis Procedure
Data analysis is a component that leads to the generation of accurate findings on a particular research study. The adoption of an appropriate research procedure enables the researcher to determine the existing relationship between the variables. The data analysis procedure also helps in the generation of appropriate results and recommendation on a particular research phenomenon (Vicente, Fátima de & Felipe Cortes, 2011). As a result, the researcher used various data analysis procedures to investigate the influence of business element such as Corporate Governance and Human resource practices to the financial performance of the Japanese automobile industries (Beck et al., 2013). For instance, the researcher used the Pearson’s correlation co-efficient to analyze the existing relationship between factors such as corporate governance and human resource practices. Pearson’s correlation co-efficient enables the individual accurately determine the existing relationship between the study’s variables (Beck et al., 2013). Researchers further indicate that Pearson’s correlation coefficient enables a researcher to generate accurate and reliable results. The analysis from the Pearson’s correlation further affirms that a positive correlation exists between the adoption of appropriate corporate governance policies and Human resource practices (Vicente, Fátima de & Felipe Cortes, 2011). The analysis further indicates that appropriate business approaches have led to the massive success and sustainable financial performance of Japanese industries in the construction, food, and information technology in the NIKKEI stock market.
The researcher also used the model to assess the nature of the relationship between the variables (Beck et al., 2013). The model revolves around the tabulation of the coded data in tables and graph. The model reveals that a positive relationship exists between the adoption of suitable policies such as corporate governance and HR practices in the success of diverse Japanese firms in the stock market (Waddock & Samuel, 1997). Research analysts and experts further postulates that the model enables the researcher to determine correlation between the variables. The model on the investigation of diverse element such as corporate governance and HR practices indicate the existence of a weak positive relationship. Consequently, the management teams of the relevant industries should formulate effective measures to align the diverse functions of corporate governance and HR practices to the business operations (Beck et al., 2013). Business analysts reveal that an alignment of the approaches will leads to massive growth of the fiscal success of the Japanese firms in the NIKKEI stock market.
The researcher undertook an extensive research on the Japanese industries’ performance in the stock market. The analysis enabled the researcher to collect data on the impact of corporate governance and HR practices to the financial performance of the industries. The data formed a crucial reference point during the coding and tabulation. The data further enabled the researcher to generate accurate data on the existing correlation between the monetary performance of the diverse Japanese industries and business techniques such as corporate governance and HR practices (Beck et al., 2013). The researcher also interviewed the relevant stakeholders in the industries to gather in-depth insights on the effects of the business approaches to the financial performance. The managers also enabled the researcher to gather essential knowledge on the importance of an appropriate business strategy in enhancing the financial competitive edge of a particular organization (Beck et al., 2013). The researcher also undertook a tryout of the measuring instruments to enhance the reliability and accuracy of the data.
The occurrence of various errors hinders the collection and analysis of data in a systematic and scientifically accredited manner, the researcher during the investigation on the factors that lead to the impressive financial performance of the Japanese industries in the NIKKEI stock market encountered various errors. The errors include sampling, population specification, non-response, and selection error (Beck et al., 2013). For instance, the researcher lacked the ability to identify the appropriate sample size that would facilitate the generalizations of the findings to other samples. The researcher also lacked an appropriate scheme to identify the relevant stakeholders that could participate in the study (Yu, 2012). Research experts reveal that the lack of an appropriate policy also leads to bias in the selection of the study’s samples. The researcher further postulated that overreliance on the financial performance records of the diverse Japanese industries in the stock market. The overreliance may have led to the collection of data that lacked essential insights on the correlation between appropriate corporate governance approaches, human resource practices, and financial performance (Yu, 2012). The respondents’ response is also a critical element that enables researcher to gather accurate data on a particular phenomenon. However, behavior psychologists indicate that respondents tend to behave differently while under keen scrutiny from the researcher. The negative behavior change hinders the collection of accurate and reliable data on a particular research phenomenon (Beck et al., 2013).
The data analysis techniques also positively align with the research questions. The researcher uses the Pearson’s correlation coefficient to help in the identification of a positive relationship that helps in generating credible answers to the following research questions.
Research Questions and Hypotheses
The study will focus on two broad research questions:
RQ1: What is the link between corporate governance and a firm’s financial performance of industrial firms in Japan’s NIKKEI Stock Market? This question seeks to examine the implication of a company's corporate governance and the financial performance: does a business become more profitable with improved management culture?
RQ2: What are the association of HR utilization and the monetary returns of industrial firms in Japan’s NIKKEI Stock Market? In this case, the study seeks to establish whether there are significant monetary returns when businesses employ best HR practices.
RQ1: What is the link between corporate governance and a firm’s financial performance of industrial firms in Japan’s NIKKEI Stock Market?
H1a: There is a significant relationship between corporate governance and firm financial performance of industrial firms in Japan’s NIKKEI Stock Market.
H10: There is no relation between company governance and monetary returns of industrial firms in Japan’s NIKKEI Stock Market.
RQ2: What are the association of HR utilization and the monetary returns of industrial firms in Japan’s NIKKEI Stock Market?
H2a: There is a considerable link between HR utilization and financial output of industrial firms in Japan's NIKKEI Stock Market.
H20: There is no considerable link between HR utilization and the profitability of industrial firms in Japan's NIKKEI Stock Market.
Results Interpretation
The analysis indicates that a positive correlation exists between the application of suitable corporate governance, HR practices, and financial performance of the Japanese industries in sectors such as food, construction, and information technology (Beck et al., 2013). The results also correlate with the finding from the literature review that indicates the importance of corporate governance and human resource practices towards sustaining the competitive edge of firm in the contemporary society. The literature review postulates that the adoption of effective governance techniques enhances the efficient utilization of the available resources towards the set projects. Suitable corporate techniques also enhance the creation of a favorable working environment that sustains the employees’ efforts leading to high operational results (Beck et al., 2013). The researcher used modeling approaches to evaluate the relationship between CSR and financial performance as variables (Yu, 2012). The researcher also ensured that the results helped in answering the research questions.
Results for Research Question 1
RQ1: What is the link between corporate governance and a firm’s financial performance of industrial firms in Japan’s NIKKEI Stock Market?
The data analysis reveals that embracing suitable corporate governance techniques has led to the impressive performance of diverse Japanese firm in the stock market. Ideally, corporate governance revolves around the suitable allocation and utilization of the available resources within an organization in fulfilling the set objectives. Efficient utilization of resources translates into an organization’s massive dominance and profitability (Beck et al., 2013). Financial experts also indicate that investors prefer spending their money on companies that have an established corporate governance approach. The analysis reveals that the approach influences the monetary performance of Japanese industries in diverse sectors such as food, construction, and information management.
Results for Research Question 2
RQ2: What are the association of HR utilization and the monetary returns of industrial firms in Japan’s NIKKEI Stock Market?
The analysis further reveals that the adoption of appropriate HR practices leads to the impressive performance of the Japanese industries. Ideally, human resource revolves around the formulation of suitable strategies that address the emerging needs among the workforce (Beck et al., 2013). The policy also focuses on aligning the employees’ objectives with the set organizational goals. Human Resource also involves the formulation of suitable reward systems to help in sustain the workforce morale towards achieving the set objectives. The approach also leads to the coordination of diverse elements within an organization in working towards the attainment of the set objectives (Beck et al., 2013). Human Resource is also a critical procedure that facilitates the acquisition and recruitment of experienced and high-qualified staff that work diligently towards the accomplishment of an organization’s goals (Yu, 2012). A proficient human resource technique also enhances the involvement of the employees in key decision-making processes thus reducing resistance towards various organizational projects (Beck et al., 2013). A proficient HR system also enhances the timely resolution of a diverse array of conflicts that emerge among the employees at the workplace. Consequently, an appropriate HR policy leads to a firm’s impressive performance in the stock market (Beck et al., 2013). Therefore, the adoption of suitable HR techniques is essential in enhancing an organization’s competitive edge and impressive financial performance in the stock market.
The analysis reveals that a positive relationship exists between the adoption of suitable practices in CG and HRP and the financial performance of Japanese firms. The analysis helps in affirming the research finding that postulate the importance of an efficient organization culture in sustaining the profitability, revenue collection, and impressive performance in the stock market. The analysis also affirms that a suitable organizational culture is crucial in enhancing the monetary performance of a particular industry in the intricate global market (Beck et al., 2013). However, the analysis reveals that management teams in the diverse industries should continuously formulate effective policies and increase their profit margin in the stock market (Beck et al., 2013).
Summary
The study reveals that a positive correlation exists between the adoption of suitable corporate governance and HR policies towards the success of Japanese industries in the NIKKEI stock market. The analysis affirms that the business firms in Japan are constantly facing stiff competition in the stock market. The business firms are also witnessing dynamic revolutions in the investors’ inclinations. As a result, the management teams are constantly formulating proficient approaches in corporate governance and Human Resource to sustain the firms. The available literature also reveals that Human Resource practices lead to the maintenance of the workforce morale towards the achievement of a company’s objectives. Effective Human resource practices also enhance the coordination of the available resources towards the timely achievement of diverse objectives within the Japanese firms.
Corporate governance is a term that denotes a business organization acting in an environmentally, socially, and economically responsible way, and transparently. In reference to that, a socially responsible business organization would assess and take responsibility for whatever effects its operations have on the local economy, environment, and social welfare. In this case, the activities pertaining to governance may involve incurring short-term costs that do not result in immediate financial benefit for the company. In essence, corporate governance may not make immediate financial sense to the company, since it involves engaging in activities that go beyond those mandated by local, national and international regulations, but they would allow the company to increase its share prices and overall income. For that matter, most corporate governance activities would involve the company engaging in projects and initiatives that are managed by the community that hosts them. For instance, some of the corporate governance activities would include assigning specific percentages of profits to fund community-based initiatives. Thus, corporate governance entails a business organization acting transparently and in an environmentally, socially, and economically responsible way (Benabou & Tirole, 2010).
Business organizations have linked governance to financial performance. Presently, a larger percentage of business organizations are grasping that their ability to remain relevant, competitive, and productive in the dynamic business environment is directly correlated to their commitment to governance. In the 20 years, the concept of globalization has eliminated national borders with advances in technology masking distances and accelerating time. Given this changing business environment, business organization want to meet their financial responsibilities of increasing their capacity to administer and regulate their risks and profits, and to guard their brands reputations. In addition, the aggressive competition for customer loyalty, investors and skilled labor have further underpinned the need for the adoption of a corporate governance. Thus, a business organization’s performance in relations to its association with its marketplace, host community, and employees greatly influence the sustainability of its success and performance (Benabou & Tirole, 2010).
Corporate governance techniques involve the adoption of effective policies that ensure the efficient utilization of an organization’s resources towards sustaining objectives. The techniques also revolve around the adoption of a proficient management style and approach that enhances the coordination of the relevant stakeholders within a firm. Empirical data affirms that a large number of Japanese firm embrace the Total Quality Management (TQM) concept to ensure that the employees work towards the continuous improvement of the existing products and services. The techniques also enhance the utilization of the available resources towards achieving various strategic plans. Consequently, the adoption of appropriate governance techniques revolves around embracing appropriate marketing techniques to enhance the awareness of a company’s products to individuals from diverse backgrounds. The techniques also ensure that the organization from collaborative relationships with other stakeholders to enhance their success and bring about an increase in the market share. Financial analysts indicate that the adoption of the corporate governance techniques has led to the massive dominance of the food, construction, and information industries in the stock market. The computation further reveals that the adoption of suitable technique is a key factor towards the success of the industries.
The study further reveals that suitable HR practices have led to the impressive financial performance of the Japanese firms in the NIKKEI stock market. A proficient HR policy aims at creating a constructive working environment through the formulation of a suitable rewards system that enhances the employees’ morale towards working diligently for the timely fulfillment of the set objectives within the Japanese firms.
Appropriate HR policies also ensure that firms select and recruit qualified staff. The adoption of suitable HR policies also ensures that Japanese firms reduce the rate of experienced staffs’ turnover. An appropriate HR policy also improves the firm’s social rating among members of the public leading to impressive performance and high appeal to potential investors (Vicente, Fátima de & Felipe Cortes, 2011). Besides, business analysts indicate that an appropriate HR policy enables investors to associate with the firm hence translating to an impressive performance in the stock market.
Essentially, the adoption of suitable policies in corporate governance and Human Resource are key components towards the impressive financial performance of the Japanese firms in the NIKKEI market. However, the firms should continuously embrace policies that address the emerging trends to sustain their competitive edge in the stock market. The analysis on data analysis lays a formidable reference point to the formulation of appropriate recommendations and conclusions.


APPENDICES
Appendix I: Corporate Governance
This list incorporates various aspects of governance within an organization. The different measures are ranked based on TOYO KEIZAI CSR Ranking on a score of 600 points. It helps to show how each aspect is influential in the overall CSR of an organization (Toyo Keizai, 2013; Toyo Keizai, 2016).
Definition of Materiality of CSR Activities
Stakeholder Engagement
Third Party Involvement in Activity Report
Establishment of CSR Department
Appointment of CSR Officer
Worksites Overseen by CSR Officer
Documentation of CSR Policy
IR Department
Legal Compliance Department
Worldwide Participation in CSR-related Standards
Establishment of Internal Audit Division
Establishment of Whistleblower Hotline (Internal and External)
Establishment of Rules on Protection of Whistleblowers’ Rights
Disclosure of Number of Cases of Whistle blowing and Internal Reporting
Cease and Desist Notices from the Japan Fair Trade Commission or Other Government Bodies
Suspension of Operations/Business Due to Misconduct, etc.
Criminal Prosecution of Legal Incidents or Mishaps
Policy on Anti-Corruption and Anti-Bribery Measures
Disclosure of Political Contributions, etc.
Establishment of Internal Control Committee
Evaluation of Internal Controls
Formulation of Security Policy on Information Systems
Status of Internal Audits of Information System Security
Status of External Audits of Information System Security
Privacy Policy
Risk Management and Crisis Management System
Basic Policy on Risk Management and Crisis Management
Existence of Response Manual on Risk Management and Crisis Management
Person in Charge of the Risk Management and Crisis Management System
Creation of BCM
Formulation of BCP
Status of Measures Taken for Risk Management and Crisis Management
Documentation and Disclosure of Business Ethics Policies
Code of Conduct, Standards and Manuals on Ethics

Appendix II: HR Utilization
This list incorporates various aspects of human resource rates of utilization within various organizations. The different rates are ranked according to the TOYO KEIZAI CSR Ranking on a score of 600 points from various companies operating in different industries. It helps to show how each aspect is influential in the overall CSR of an organization (Toyo Keizai, 2013; Toyo Keizai,2016).
Female Employee Ratio
Turnover
Overtime Hours
Existence of Non-Japanese Management Positions
Ratio of Female Management Positions
Ratio of Female General Manager or Higher Positions
Appointment of Female Officers
Basic Principles for Promoting Diversity
Management Policy on Respect for Diversity
Dedicated Department for Appointment of Diverse Human Resources
Disabled Persons Employment Ratio (Actual)
Disabled Persons Employment Ratio Target
Employment until 65
Response to LGBT
Paid Leave Acquisition Rate
Maternity Leave Duration
Maternity Leave Takers
Child Care Leave Takers
Male Child Care Leave Takers
Maternity and Paternity Leave for Spouses
Elderly Care Leave Takers
Family and Elderly Care Leave
Re-Employment of Employees Who Resigned Due to Pregnancy or Childbirth, etc.
Unique Work-Life Balance Support Systems
Flexible Work Programs
Employee Incentive Programs
Occupational Health and Safety Management System
Occupational Health and Safety Award History
Industrial Accident Frequency Rate
Number of Employees on Leave Due to Mental Health Issues
Policy on Respect for Human Rights
Measures Regarding Respect for Human Rights
Management Respecting ILO Core Labor Standards
Response to Four ILO Core Labor Standards Fields
Disclosure of Employee Evaluation Standards
Disclosure of Results of Skill Evaluation to Relevant Employee
Employee Satisfaction Survey
Retention of New Graduate Recruits
Disclosure of Occurrences of Labor Problems

Appendix III: Financial Performance
This list incorporates various aspects of financial performance within various organizations. The different rates are ranked according to the TOYO KEIZAI CSR Ranking on a scoring system from various companies operating in different industries. It helps to show how each aspect is influential in the overall performance of an organization (Toyo Keizai, 2013; Toyo Keizai,2016).
Growth potential
Profitability
Stability
Firm size

Appendix IV: CSR
This list incorporates various aspects of CSR within various organizations. The different rates are ranked according to the TOYO KEIZAI CSR Ranking on a scoring system from various companies operating in different industries. It helps to show how each aspect is influential in the overall performance of an organization (Toyo Keizai, 2013; Toyo Keizai,2016).
HR utilization
Environment
Corporate governance
Sociality


Appendix V: Histogram of corporate governance, CSR total and financial performance total for 2013
 

 
 

 

 

 
 

 

 

 
 
 

 

 
 
 
 

 

 
 
 

 

 
 

Appendix VI: Histogram of corporate governance, CSR total and financial performance total for 2014
 

 

 
 
 

 

 
 

 

 
 

 

 

 

 


 

 

 
 

 

 

 

 
 


Appendix VII: Histogram of corporate governance, CSR total and financial performance total for 2015
 

 

 
 

 

 

 

 

 

 

 

 

 

 
 

 

 

 

 


 

 

 

 
 Evaluating the Influence of Corporate Governance and Human Resource Practices on 　the Financial Performance of Industrial Firms Listed
in Japan’s NIKKEI Stock Market

RESEARCH METHODOLOGY
Introduction
It is the aim of this study to examine the how CSR affects the productivity of industrial enterprises in the Japan's NIKKEI Stock Market. The financial results of specific industries will be compared with the level of CSR carried out by the given business. The variables will be represented using A & B where A will represent the independent variables while B represents the dependent variables. In this study, the independent variables are corporate governance and Human Resource utilization (Berger, 2015). The dependent variable is the organizational financial performance. This study entails companies that are listed in NIKKEI Stock Market. Specifically, the Toyo Keizai Inc. database will be used to collect the data about CSR for Japanese firms. Toyo Keizai Inc. data base also contains financial information about the company and it will be essential in carrying out this research. The study findings are expected to give significant information showing the relationship between corporate governance and human resource utilization on the companies’ financial performance (Ameer & Othman, 2012).
This study aims to take a general and a specific view on the effect of CSR on the financial returns of firms listed in the Japan's NIKKEI Stock Market. The purpose of this study is to bring together data that will be used in interpreting the role played by human resource utilization and corporate governance on the financial performance of the firms listed on the NIKKEI Stock MARKET. In the first chapter of this, the importance of this study is highlighted. The statement of the problem is also included in the article. There are also research questions that are important in explaining the hypothesis of the paper.
The research methodology used in this paper contains an elaboration of the method used in the previous chapters. In the study design, a rationale for the selection of the research design is discussed. The paper also includes the samples that will be selected for the study which will include information from various companies listed in the NIKKEI Stock Market. Quantitative sources of data will be used to justify this study. The evidence that will make this study valid and reliable will also be included. In this paper, the method used to collect the data will be explained and analyzed. The ethical considerations made when carrying out this study are essential in this research and they have been included. The limitation experienced when developing this study and the summary will finalize this paper.
Statement of the Problem
The main problem this chapter intends to discuss is the inadequate literature concerning the connection of social obligation and the profitability of the businesses trading at the Japan's NIKKEI Stock Market. Many institutions have failed to identify how organizations operate and this is attributed to the limited information on the management of the organizations. Specifically, the slow incorporation of CSR and corporate governance in the business environment in Japan makes the present research essential in bridging the existing knowledge gap and the link between two attributes (Ameer & Othman, 2012). The lack of enough literature increases misinformation on matters of social responsibility among the high-performing companies not only in Japan but the whole world because people rely on assumption or the information brought out by biased sources such as media outlets.
The existing studies depict that businesses and their stakeholders are reluctant in contributing to the well-being of the communities despite the massive profits they make from their activities. Further research indicates that there is an active connection between a company's financial performance and the extent of its social obligations (Ameer & Othman, 2012). Based on this gap, it is important to examine the whole relationship in a comprehensive way. There is a shortage of data explaining how companies in Japan operate and the present survey will fill the data gaps by providing a comprehensive and empirical study that will explain the financial implication of CSR for firms trading at the NIKKEI Stock Market (Filatotchev et al., 2013).
There have been many studies conducted illustrating the relevance of CSR on many aspects of the company. The highlight is placed on the effect of non-profitable ventures on the financial returns gained by a businesses. The literature has been inconclusive and because of the inconclusive research, there have been controversies surrounding the study. A historical analysis reveals that the engagement of the companies in the society's activities has been in existence for a long time. However the companies have been focusing on their stakeholders and shareholders recently and since there is the need for the companies to look beyond the shareholders and the stakeholders, the companies' websites hold information about their CSR activities today (Nakamura &Tommi, 2012).
Research Questions and Hypothesis
In this research, the independent variables are the corporate governance and HR utilization while the dependent variable is the company’s financial performance. The CSR has the power to influence many factors in a company. This study explains the relationship that exists between the independent and dependable variables and also collects data to analyze how the relationship can be tailored to be positive for the companies in the different industries.
The data will be gathered in a group using different ways depending on the variables. These groups will include the year, the industry category, the direction of results and the challenges that will be faced during the collection process. When collecting the data, the companies' strategic plans towards HR utilization, CSR and corporate governance will be considered. This will ensure that all factors that can affect the relationship between HR utilization, CSR and corporate governance on one hand, and the financial performance on the other hand are observed.
The financial performance of the companies under the study that has not been publicized will be exempted from the published data for the company's protection. All the information collected and not shared will be protected by using network security measures. This will ensure that the corporation's data collected will not compromise on its competitiveness in the industry.
The study will focus on the following research questions
What is the relationship between corporate governance and the firm's financial performance of the industrial companies in Japan's NIKKEI Stock Market?
What is the relationship between HR utilization and firm financial performance of industrial firms in Japan’s NIKKEI Stock Market?
Research Methodology
Table 1. Outline of the research approach and methodology
 
Step    Explanation       
Step 1    Quantitative method will be used to determine the correlation between the corporate governance and the human resource utilization on the financial performance.       
Step 2    This step involves using the quantitative data collection method to assist testing the research hypothesis and theories. While the expected sample size was 273, 443 companies were reviewed in 2013, 487 companies in 2014 and 522 companies in 2015 for a total of 1452 companies reviewed over the three years period. The difference was occasioned by the nature of the data source since the companies were from the industrial firms listed in Japan’s NIKKEI stock market.       
Step 3    In this step the limits will be addressed to ensure that they do not interrupt with the methodology used.       
Step 4    The collected information will be analyzed by employing Statistical Package for the Social Science (SPSS) to assess the association between CSR and firm financial performance of industrial firms in Japans NIKKEI Stock Market.       
Step 5    Statistical tests will include a test of normality and a correlation analysis. As the ratings are considered rankings, they will not be distributed. For this reason, Spearman's Rank-Order Correlation will be used to determine the relationship between the three variables: corporate governance, HR utilization and financial performance.       
Step 6    Toyo Keizai Inc. started Toyo Keizai survey as a commemorative project for their 110th anniversary. The purpose of the survey is to introduce those Japanese corporations CSR activities to the world. The Toyo Keizai Inc. sent questionnaires by post and other means to all listed Japanese companies in Japans NIKKEI Stock Market. Toyo Keizai has prepared a CSR database of companies. By providing the CSR information of Japanese corporations for people inside and outside of Japan as appraisal material, Toyo Keizai hopes to enable constructive discussion.    

This project will use a quantitative research method to determine the effect of corporate governance and the human resource utilization on the financial performance of the Japanese Companies listed on the NIKKEI Stock Market. This approach is practical because it requires a limited amount of time and resources. The approach will augment the simplification of the collected data (see Table 1).
The quantitative data collection method also helps in testing the research hypothesis and theories. According to Bernard and Bernard (2012), this strategy supports the collection of huge volumes of data from different sources. The companies under the study can also use the numerical data used on a later date as a reference when researching on other business practices that will enhance their income (see Table 1). It is important to note that while the expected sample size was 273, 443 companies were reviewed in 2013, 487 companies in 2014 and 522 companies in 2015 for a total of 1452 companies reviewed over the three years period. The difference was occasioned by the nature of the data source since the companies were from the industrial firms listed in Japan’s NIKKEI stock market.
The only shortcoming of this method is that it requires the use of limited numbers of variables and assumption. However, it is productive and it will be useful in identifying the link between CSR and firm financial performance of industrial firms in Japan's NIKKEI Stock Market. Based on the presented data, other methods like mixed data collection approach and qualitative data will not be appropriate for the research. This is due to the fact that this approaches will require more resources and will take more time. Furthermore, the quantitative data collection method is reliable to understand the connection of social obligations and monetary returns of industrial firms in the NIKKEI Stock Market (Nakamura & Tommi, 2012).
Research Design
This study will use a non-experimental, quantitative, connection research framework that facilitates the collection and the analysis of the existing information on the correlation of social responsibility and the profitability of industrial firms in NIKKEI Stock Market. This research is similar to the Tonosaki's model that describes the quantitative research methodology. There will be different criteria used which includes the use of indexing and selection of variables.
The quantitative research carried out in this study will be essential in linking the existing theories and data to the expected research objectives. According to Mackey and Gass (2015), this approach supports the adoption of different strategies when selecting a research sample. The prior research effect size will be used to determine the sample's size. Using an alpha of 0.05, a statistical power of 0.80 which is the minimum for the quantitative research and the estimated effect size of 0.15 the sample effect will be calculated to be 273. This rationale is drawn from the assumption that the identification of the association between corporate social obligation and economic output of industrial firms in Japan's NIKKEI Stock Market requires a lot of information. That said, the quantitative data collection approach will support the collection and the analysis of the adequate amount of information (Berger, 2015). The research begins by identifying the research sample, data collection and the analysis.
The research includes dependent and independent variables. The dependent variables are the company's financial performance and the independent variable is the corporate governance and HR utilization. Toyo Keizai evaluates corporate governance of the business by scoring the 34 items which include stakeholder engagement, evaluation of internal control and the standards and manual of ethics. Toyo Keizai also evaluates HR utilization of the companies by calculating 39 items which include the female employment ratio, the management policy on the policy for diversity and the employees' turnover among others. These variables have proven to have an influence on the company’s financial performance as they affect the quality of work life, the company’s image which in turn affects the profits of the company. Using this design for this research will ensure that the data collected is relevant and gives the most applicable information about the company (Filatotchev et al., 2013). All data used in this study is publically available and therefore will be in line with the privacy rules of the companies under the study.
Population and Sample Selection
The study is conducted in Japan where it examines the correlation between CSR and HR utilization to the monetary returns of the company. The total population of the study is the companies listed at NIKKEI Stock market and the target population includes industries in food, chemicals, construction, information &communication, retail and electric machinery. These industries are listed chronologically in the Toyo Keizai database. The industries are the six industries were considered because they are the most common and they interact with the society frequently.
The sampling method used for the study is the stratified random sampling where the different companies are divided into given industries. This method is best for this study because research has proven that it is the perfect method when the target is heterogeneous. The method makes it easy to collect data across the target population because after dividing the population into smaller groups, it will be easier to collect more specific information about the target population.
The samples that will be used for this population will be from companies that have been listed on the Japan's NIKKEI Stock Market. The study will randomly pick some companies from the six industries earlier stated and analyze the effect that the human resource utilization and the corporate governance have on the financial performance of the industrial firms listed in Japan’s NIKKEI Stock Market. The participants will be required to provide the information on their strategic plans on CSR from the years 2013 to 2015. The companies will also provide their financial information for those years. The data collected from the companies will be kept safe in a way that it will not harm the companies' competitiveness in the industry. This safety will be ensured by not disclosing the information that the companies have kept private. The information collected from the companies will also be protected by a server from the internet keeping the companies' private information safe (Filatotchev et al., 2013).
The research study intends to apply the central limit theorem (CLM) in determining the sample size. This is based on the awareness that CLM is a statistical and mathematical concept that explains the distribution of data. In fact, it contends that randomly selected samples are likely to present a more normal distribution when more samples are used. A more comprehensive definition of the theorem contends that for a random distribution that has a specified variance and mean, both the variance and mean will approach normal distribution with an increase in the sample size. The implication is that irrespective of what the original distribution will be and its skewed nature, it will always approach the normal distribution if the number of samples is increased. In addition, it shows that a normal distribution will definitely be arrived at with an increase in the number of samples (Johnson & Kuby, 2012).
It is important to note that the CLT assumes that the number of samples is as infinite as the whole population. This means that the number of scores that can be used to calculate the mean is infinite. For instance, if four researchers were engaged in different studies that used 1, 4, 7 and 10 sample sizes respectively from a uniform distribution and each one was subjected to 300 procedures, then it would be noted that the higher number of samples would produce more scores and a mean distribution that approached normal distribution. This awareness makes two things clear about the CLT. Firstly, the distribution of the mean approaches normal with an increase in the sample size, to indicate that higher sample size is more likely to present normal distribution. Secondly, there is reduced spread of distribution as the sample size increases, to imply that the distribution standard deviation reduces with an increase in the sample size (Ash, 2012).  
It is important to note that the unique properties of the CLT have important value to hypothesis testing. In this case, the null hypothesis assumes that the mean distribution is normal while the standard deviation can be chi squared. For that matter, it assumes that for a specified sample size described as n, its mean would be x while the mean for a normal distribution would be u, and the standard deviation be σ. Using critical regions and test statistic, it would be possible to either accept or reject the null hypothesis such that it is rejected if the test statistic is within the critical region and accepted if it is outside the critical region (Johnson & Kuby, 2012). As such, applying the concept of CLT justifies the use of all the available data (including information from the six industries that covers 1,305 firms after 3,580 firms had been contacted) to ensure that the collected data approaches normal distribution.
Instrumentation (Quantitative)
This research will use the quantitative methods to collect information. Structured observation will be one of the methods used to collect information on the target population. The first step in this method will be to define what needs to be observed and after that one can decide on how the observations will be made, recorded and coded. A category system will be developed and it will be used to organize the behavior of the events under observation (Berger, 2015). The information used for this study will be from Toyo Keizai Inc.
Archived data will also be essential for this study because through it, past information about the company that can be useful in the research will surface. The information obtained from Toyo Keizai Inc will reveal the past records of the connection that existed between the CSR and HR utilization of the company to its financial performance in the past. According to Bernard and Bernard (2012), this information will form the basis of the research but since it can implicate the companies, assurance of security of the information offered should be guaranteed.
Another quantitative method that will be used for this research will be interviews.  Structured interviews are more common with qualitative research but in this case they will be useful because the interview will be structured in a way that the interviewee will only chose one response from a series in the interview form. The interviewee can also be asked to pick an item from a list and this will help in getting the data quantitatively. Interviews will be applicable for this research because they will offer the perception of the interviewee which cannot be captured using any other method.
Questionnaires will also be useful in collecting data on the well-defined issues. In this research the questionnaires will be used to provide the data that can be easily analyzed and the unbiased response. The questions used in this quantitative data collection method will be closed questions because they will ensure that the data collected from them will be unbiased.
Physiological measurement is another sampling method that will be essential in collecting data in the research. This method will be important in determining the effect of CSR and HR utilization in the companies because it will engage the participants directly and observe their reaction to different questions and information about their respective companies. With these sampling methods, there will be reliable information that will be essential in conducting the study (Treiman, 2014).
Statistical Tools
The research study intends to use tables and figures as statistical tools for data presentation. That is because they depict changes that are then noted against a selected average, lower limit and upper limit calculated based on the collected data (Mudie & Pirrie, 2006). This implies that the tables and figures are evaluation tools that provide a visual presentation of changes.
Of unique importance in the statistical tools will be the occasions when peculiar patterns are shown. Five patterns will be of importance. Firstly, persistent or consistent data points will indicate that there are some peculiarities in the firms’ performance. Secondly, a sequential run of eight data points on the same side of the selected average, or as much as 80% of the data points being on the same side of the selected average. Thirdly, four successive data points being on the same side of the selected average and being more that one standard deviation from that average. Fourthly, two successive data points being on the same side of the selected average and being more that two standard deviations from that average. Finally, one of the data points being out of the control limit at more than three standard deviations away from the selected average to imply that it is either above the upper control limit or below the lower control limit (Kubiak & Benbow, 2009).
The peculiar patterns within the data points are the results of special cause variations, and are based on the awareness that a business industry will have common cause variations in every occasion thereby causing data points to be both above and below the average. For instance, an experienced manager making occasional management errors is considered as a common cause variation that does not result in out of control points, while an inexperienced manager causing numerous errors can be considered as a special cause of variation (Kubiak & Benbow, 2009; Morrow, 2012).
Data Validity
The validity of data is the range at which an instrument measures what it is expected to measure. It is rare for any instrument to give results that 100% valid and therefore validity is measured in degrees. To ensure the validity of the data collected in the research, the data will be subjected to statistical tests and measures of the instruments. In the validation, the time taken to administer the results of the measurements will be considered. The directions that are given to using the measurements will also be discussed and their clarity examined. Another critical examination factor will be the feedback of the people who have used the analysis before (Treiman, 2014).
When shaping the validity of the data, in this research, the external validity will show the level to which the outcomes of the study can be widespread from a model to a population. Given that a sample is a precise illustration of a population, the instrument that will be valid will be able to measure the degree of which a sample represents a population.
To ensure the validity of the data collected, the appropriateness of the instruments used should be placed into consideration. This involves determining whether the method of data collection assess the needed knowledge. In this research, the data that Toyo Keizai Database collected from the interviews, the physiological measures and the questionnaires will be evaluated to ensure that it is valid.
Reliability
Reliability is the consistency equitability of the measurements.  If a measurement is reliable, in the occurrence of a similar data collection procedure in the future, the same results will be found. In measuring the reliability of the instruments used to collect data in this research, the following estimators will be considered. First, measuring the observer reliability in the study will be used to determine the degree to which diverse observers give consistent estimates. Secondly, test-retest reliability will also be used to measure the constancy of a quantity evaluated over a given time.
Andrews and Herzberg (2012) explains that a third test that will be used to show the reliability of the data collected in the research is the parallel-Forms Reliability. This test will measure the reliability by examining two tests constructed in the same way and also from the same content. The internal consistency reliability will also show the consistency of results across the companies in the research.
Data Collection Procedure
The information that is on the NIKKEI Stock Market will be used in defining and forming a perspective on the research question. The Toyo Keizai Inc. database will also be used by the researchers to find the articles with the information on the companies that have been selected for the project. There are steps that will be followed in the data collection procedure. They include acquiring permission from respective firms to collect data, notification of the study partners, reviewing the articles, sample selections, data grouping, and privacy protection and guarantying the security of the data collected (Andrews & Herzberg, 2012).
The permission to use the information from the site will be requested from the Toyo Keizai Inc. database administrators. The conflict of interest position will also be declared before the research. In the case where the information will be requested from the company, the researchers will submit a formal request to acquire information and also avoid the use of confidential data. The companies that are participating in the research will be notified and the characteristics of information applied to the study will be clearly indicated to mitigate future conflicts and lawsuits. In the course of the notification, the respective companies will be assured that the data collected will only be used for the study. A review of the collected literature will be done in a sequential manner and they will begin with the earlier years to the most recent period. The review of the articles collected will include the study objectives, the research methodology used, the results, the conclusions and discussions with a focus on the possible position of the variables considered in this paper. The discussions will also be reviews based on whether the findings indicate a correlation or otherwise to inform subsequent steps in the present study (Park & Shaw, 2013).
The data will be collected in different ways that will be motivated by the variables of interest. These groups will include the year, the industry category, the direction of the results and the challenges that will be faced in the data collection process. The privacy protection will be guaranteed; concealing the information on the companies' strategic approaches to CSR and corporate governance. The financial information and performance that the company has not publicized will also be excluded from the published data to protect the company. In addition, the information that will be collected and not shared will be protected using different internet and network security approaches. These protection layers that will be introduced will seek to reduce the possible unauthorized access to data and information collected which has the power of comprising the competitiveness or operations of the companies that are involved in the study (Park & Shaw, 2013).
After guarantying the safety of the data collected, the researchers will collect the data from the company's archives. This will include the published and unpublished information about the company. The data collected will be from the year 2013 to the year 2015. The questionnaires will be given to the company's stakeholders, and they will contain closed questions which will not be having a lead to avoid biases of the data. Also, interviews with the researchers and the company's managers will be conducted. The data collected will place the researchers in a good place to analyze it.  
Overall, the data collection approach is based on convenience sampling whereby the data provided by Toyo Keizai was considered appropriate for the research. The choice of data source is based on the need to access a large number of companies. Currently, Toyo Keizai includes a survey that covers 1,305 firms (listed 1,259, non-listed 46) from which they received the responses on survey slips which were distributed to 3,580 listed firms and non-listed major firms. Among the listed firms, the industries including over 200 firms in the large category by the Securities Identification Code Committee have been selected (Construction, Foods, Chemical, Electric Machinery, Information & Communication, retail). The information provided by Toyo Keizai’s survey provided enough information to inform the research results.
Data Analysis Procedures
The data collected will be first identified with the level of measurements associated that are connected with the quantitative data. This is because the level of measurement will determine the type of analysis that will be applicable. The method of measurement that have been used by the Toyo Keizai Inc. has a continuous, consistent data with a neutral zero. As earlier stated, all data used for this research can be publicly available at Toyo Keizai Inc.
The data collected in this study will be analyzed using Statistical Package for Social Science (SPSS). It will assess the association between the social obligation and the financial returns of the industrial firms in NIKKEI Stock market. The financial returns for a company can vary because of the size of the company and the kind of business conducted in the company. After collecting the information, it will be analyzed by statistical tests which will include a test for normality and a correlation analysis The data on the financial performance of the company will be given the following ratings AAA, AA, A, B and C. The figures given to each are: AAA=5, AA=4, A=3, B=2, C=1 and invaluable =0.
The data will be evaluated based on its CSR information. The evaluation is done by Toyo Keizai using the principal component analysis technique of multivariate statistics in the field of HR utilization, corporate governance, environment and sociality. This analysis will be utilized in the study and the four items were assigned the following ratings: AAA, AA, A, B and C. The figures allocated to each are: AAA=5, AA=4, A=3, B=2, C=1 and invaluable =0. The independent variables in the study are corporate governance and HR utilization while the dependent variable is the firm's financial returns. These variables will be analyzed using correlation, variance and regression (Csikszentmihalyi & Larson, 2014).
Correlation is a calculation which is statistical in nature and its aim is to describe the nature of the affiliation between two variables. When using correlation to analyze the data collected in this study, it is important to note that correlation does not explain causation. It only indicates that connection or a pattern exists but it does not mean that one variable is affecting the other.
Analyzing the data by variance will assist in examining if the difference in the averages of the data for two given groups is significant. In this case, a study of variance will help in determining if the monetary returns of the companies that participated in social work and other non-profitable ventures are significantly difference from those who did not participate in the activities (Csikszentmihalyi & Larson, 2014).
Regression is an extension of correlation and it is used in determining if one variable can be a predictor of another variable. In this study, the regression observed will ascertain the strength of the relationship between the intrusion and the outcome variables. It will also determine if one variable, for example, the corporate governance is a significant statistical predictor of the outcome of another variable like the engagement of the company in social responsibility. The method used in analyzing this data will be in line with the research design as the research design of this study seeks to establish the correlation between the dependent and the independent variables (Andrews & Herzberg, 2012).
Ethical Considerations
The researchers will follow ethical guidelines when conducting this study. First, the data will be collected using ethical means. All data obtained in the research will be contained from the companies participating in the research and legal forms. The researchers will respect the decision of the companies to withhold certain information. In addition, the researchers will notify the company of all information that is obtained from other sources other the company. This will enable the company to verify if the information contained in those sources is accurate and will not compromise the position of the company (Nakamura &Tommi, 2012).
When collecting the data, the researchers will not interrupt on the usual schedule of the companies. The researchers should, therefore, consult the business on the best time to collect data and avail themselves. The data obtained from the research will only be used for the study and it will be used in the original form. There will be no editions or duplications done by the researchers and the data will be kept securely. The data will be obtained in a confidential way and the anonymity will be assured by not disclosing the individual names of the interviewees and by using the data that has been authorized by the company.
If in the course of the study the researchers have collected private information or came across private information concerning the company and its stakeholders, they will treat the information with the privacy required. The information will not be disclosed to a third party and the researchers will only publish the public information. In addition, the ethical guidelines provide that the researchers should not use the information that will compromise the competitiveness of the company.
Limitations
Like other studies, there will be several limitations that are bound to be experienced when conducting this research. The limitations may occur because of the nature of the companies that should be studied. The limitations are expected in different phases of the research and they include
Reluctance by the company to share information with the researchers.
Lack of support and cooperation from the enterprises involved when collecting information.
Different nature of the company that will result in inconsistency to the data collected.
Lack of information from some selected companies.
Time limitation due to a significant amount of information that needs to be processed.
Inadequate resources to use in the analyzing of the collected data.
The assumptions made in the study may cause discrepancies in data and the information.
Summary
This chapter is a combination of chapter one and chapter two in which it explains the way the data is collected and analyzed. It also explains the nature of CSR in six industries that have been listed in the Japan's NIKKEI Stock Market. The background of the study describes the content of the paper and it develops the overall goal of this chapter. The purpose statement and the problem statement have been included and they describe more specifically what this chapter hopes to achieve.
The research methodology and design included in the paper explains how the study will be carried out. A description of how data will be collected and analyzed has also been included, explaining how the researchers will include the reliability and the validity of the data collected. The chapter has concluded with the ethical considerations and the limitations faced when conducting the study. The following chapters will discuss the relationship between the CSR and the human resource utilization with the financial performance of the shortlisted companies.

CHAPTER 4: RESULTS AND DATA ANALYSIS
Introduction
The chapter will analyse the data collected by the researcher from various primary and secondary sources. Ideally, the study revolves around examining the manner in which CSR influences and determines the success, competitive advantages and productivity of industrial enterprises in the Japan's NIKKEI Stock Market (Barsky, Hussein & Jablonsky, 2014). Therefore, the chapter will use the collected financial results on the identified industries to facilitate the comparison benefits of the corporate governance in the identified business entities (Beck et al., 2013). The chapter will also represent variables using A & B concepts. The concept A in the data analysis process will represent the independent variables in the research paper. On the contrary, the concept B will represent the dependent variables. The understanding independent and dependent variables will help the research respond to the research question. The chapter indicates that the independent variables are corporate governance and Human Resource utilization (Barsky, Hussein & Jablonsky, 2014).
The chapter will evaluate information collected from companies listed in NIKKEI Stock Market.  Effective analysis of all the necessary data will be significant in identifying benefits of the research in the marketing and business management field (Boon & Boone, 2012). Precisely, the Toyo Keizai Inc. database will be essential in supporting the analysis of the data about corporate governance for Japanese firms.  The researcher has also gathered notable level of information from the Toyo Keizai Inc. database. The Toyo Keizai Inc. database contains essential financial information about the company and its development and growth process (Boon & Boone, 2012). Therefore, the database is essential in analysis and understanding the manner in which corporate governance influences the success and productivity of industrial enterprises in the contemporary competitive Japan's NIKKEI Stock Market (Barsky, Hussein & Jablonsky, 2014).  
The data analysis process will also be critical in understanding the presented information on the significant information presenting the relationship and connection between corporate governance and human resource on the companies’ economic and financial performance and progress (Barsky, Hussein & Jablonsky, 2014). The chapter also focuses on identifying the specific and general views and perspectives on the implications and benefits of corporate governance on the financial and economic outcomes of companies and business entities that undertake their operations and activities in the Japan's NIKKEI Stock Market (Boone & Boone, 2012).  
Approaches to Results and Data Analysis
The understanding of the implications and benefits of corporate governance on the financial and economic outcomes of companies and business entities that undertake their operations and activities in the Japan's NIKKEI Stock Market will be relatively significant in enhancing the formulation of sustainable and competitive operations and management plans (Braguglia & Jackson, 2012). As a result, the researcher will rely on the collected information to integrate to all the collected empirical data that will support the understanding of the contribution and roles played by human resource utilization and corporate governance on the financial performance of all business entities listed on the NIKKEI Stock MARKET and other global markets.  As a result, the analysis will be relatively significant in enhancing the testing of the research hypothesis. Equally, effective use and analysis of the collected data will respond to the research question (Braguglia & Jackson, 2012).
The data analysis will also focus on responding to the research questions. Some of the essential research questions included the understanding of the relationship between corporate governance and the firm's financial performance of the industrial companies in Japan's NIKKEI Stock Market (Braguglia & Jackson, 2012). The analysis will also be critical in responding to the question on the relationship between HR utilization and firm financial performance of industrial firms in Japan’s NIKKEI Stock Market.
The analysis also helps to highlight the differences between the study and other existing literature in the academic and business sectors.  Based on the presented data, the   gather information from the current study is relatively different and detailed as compared to previous studies (Brearton, 2015). The study provides specific and broad variables on CSR and the corporate performance among companies listed in the Japan’s NIKKEI Stock Market. Modern scholars further affirm that the existing studies fail to provide adequate information on CSR in Japan’s NIKKEI Stock and other popular global markets. In most instances, corporate governance supports the overall efficiency of businesses that conduct their operations in the NIKKEI market.  Therefore, the research findings provide detailed statistical and numerical data on the relationship between CG and monetary gains. The accessible data also indicates that the existing literature on the Japan’s NIKKEI Stock Market do not provide detailed analysis of the implications of good governance and financial contribution to the business success and productivity (Beck et al., 2013).
However, the study has the necessary research findings on the implications of good governance and financial contribution. As a result, detailed analysis of the collected data will be significant in enriching the already existing stock of knowledge.  Furthermore, the accessible data fails to provide credible empirical data on the relationship between corporate social responsibilities in human resource practices and the resultant profitability (Brearton, 2015). However, the research findings also indicate that the understanding of the relationship between CSR in human resource practices and the resultant profitability reduces the cost of attaining the shareholders’ immediate and long-term needs and interests (Beck et al., 2013).  Therefore, based on the identified setbacks, the analysis of the collected data will be critical in supporting the understanding of CSR and financial performance of businesses in Japan’s NIKKEI Stock Market.
 The understanding and effective application of the sustainable research design and methodology will help the researcher make effective analysis of the collected empirical data. Ideally, the project relies on the quantitative research method to determine and understand the significant of the Corporate Governance and the HR practices on the financial performance of the Japanese Companies listed on the NIKKEI Stock Market.  The use of quantitative research approach is significant since it requires a limited amount of human and capital resources and data collection period (Beck et al., 2013).  The approach also support reliable generalisation of the collected information. Therefore, effective application of the approach has proved to be relatively significant in supporting the collection and analysis of reliable and adequate information. The analysis also relies on the quantitative data collection method to facilitate the analysis and testing the research theories and hypothesis. The quantitative data collection strategy supports the collection of a huge and reliable volume of data from both primary and secondary sources of information (Brearton, 2015). The plan also facilitates the collection and analysis of numerical information from difference sources. However, although the quantitative approach has proved to be relatively effective in supporting the data analysis process, the initiative has some regrettable setbacks.  First, the quantitative research approach requires the use of limited numbers of assumptions and variables (Beck et al., 2013). However, the use of limited numbers of assumptions and variables can be ineffective in linking the relationship between CSR and firm financial performance of industrial firms in Japan's NIKKEI Stock Market (Crowther & Aras, 2008).  Therefore, to address the setback the research could have considered alternative data collection strategies such as mixed data collection approach and qualitative data collection approaches. In most instances, mixed data collection approach and qualitative data collection approach provide adequate information that enhances the data analysis process (Beck et al., 2013).
The data analysis will also rely on the existing integration and connection research framework, non-experimental, and quantitative methods to that facilitates the collection and the analysis of the existing empirical information on the correlation of governance and the profitability of industrial firms in NIKKEI Stock Market (Dumay & Cai, 2015).  Therefore, the use of Tonosaki’s model in the data analysis process will be significant in supporting the description of the quantitative research methodology.  Effective utilisation of different criteria such as indexing and selection of variables will also support the identification of credible data that will enhance the analysis processes (Beck et al., 2013). The quantitative research will also play a notable and reliable role in linking the existing theories and data to the expected research goals and objectives. The understanding of the research design also enhances the adoption of different and reliable strategies to support the identification respondents that provide the most reliable information to support the research outcomes (Beck et al., 2013). Therefore, the effective use of an alpha of 0.05, a statistical power of 0.80 which is the minimum for the quantitative research and the estimated effect size of 0.15 the sample effect will be calculated to be 273. While the expected sample size was 273, 443 companies were reviewed in 2013, 487 companies in 2014 and 522 companies in 2015 for a total of 1452 companies reviewed over the three years period. The difference was occasioned by the nature of the data source since the companies were from the industrial firms listed in Japan’s NIKKEI stock market. The analysis will support the rationale of drawing the data from the assumption that the identification of the association between corporate social obligation and economic output of industrial firms in Japan's NIKKEI Stock Market requires huge amount empirical and statistical data. The quantitative data collection approach will also enhance the analysis of the adequate amount of information (Gangi & Trotta, 2015). Therefore, the data analysis will support the affirmation of the research sample, data collection, and the analysis. The understanding of dependent and independent variables will also enhance the analysis of the research numerical data.  So far, the research dependent variables are the company's financial performance and the independent variable is the corporate governance and HR utilization (Beck et al., 2013). Therefore, the analysis will analyse the corporate governance of the business by scoring the 34 items that include stakeholder engagement, evaluation of internal control and the standards and manual of ethics. The analysis will also  use of HR utilization of the companies by calculating 39 items which include the female employment ratio, the management policy on the policy for diversity and the employees' turnover among others.  Currently, the accessible literature review indicates that the research variable variables have an influence on the company’s financial performance as they affect the quality of work life, the company’s image that in turn affects the profits of the company (Beck et al., 2013).  Therefore, the use of the quantitative research design will ensure that the data collected is relevant and provide the most applicable and reliable data and information about the companies’ position in local and global markets. The use of information and data that are available in the public will also affirm the credibility of the research outcome (Hillman & Keim, 2001).  
Therefore, the data analysis will use the collected information to understand and establish the relationship between corporate governance and firm financial performance of industrial firms in Japan’s NIKKEI Stock Market (Beck et al., 2013). The analysis will also identify the relationship between corporate governance and firm financial performance of industrial firms in Japan’s NIKKEI Stock Market by applying the advanced theoretical knowledge and methodology analyse quantitative research data from existing organizations and other external sources.  The effective use of the theoretical frameworks in the data analysis process will provide adequate information on the implication of a company's corporate governance on the businesses financial output activities and strategies (Beck et al., 2013). Therefore, the analysis main objective is to use the existing and the collected data to understand whether businesses are profitable with improved management culture. The effective analysis of the collected data will also help to establish the association between HR utilization and the monetary returns of industrial firms in Japan’s NIKKEI Stock Market (McKinley, 2014).  Therefore, the analysis of previous researcher and scholars’ views will be significant in enhancing the deeper understanding of the HR impacts on organizations’ performance.  Effective application of the identified theories and conceptual will also support the understanding of the research findings (Beck et al., 2013). The conceptual framework will also facilitate the deeper understanding of the expected outcome of the research process.  
Descriptive Data
Sample population
The research sample was relatively significant in supporting the collection of adequate and reliable data and information to respond to the research questions. As a result, the researcher engaged in intensive surveys and academic research to understand and identify the most effective means and approach to identify the research sample. Literature review on sampling process and benefits was relatively important in supporting the identification of the most effective strategy to sample the research population (Beck et al., 2013). The consideration of other critical factors such as the resources, the research goals, study scope, ethical issues, and the time available for the study was also significant in enhancing the identification of reliable research outcomes (Molina, Clemente & Rubio, 2013).  Modern scholars confirms that the identification of the most reliable research sample support the credibility of the research outcomes. As a result, the researcher undertook the research in the Japanese NIKKEI Stock market.  The identification of Japanese NIKKEI Stock market revolved around the competitive nature of the market as compared to other global sectors (Beck et al., 2013).  Besides, as compared to other global markets, Japan was significant in supporting the examination of the correlation between CSR and HR utilization to the monetary returns of the company.  
The researcher also relied on a relatively sizeable and manageable number of the research sample. Consequently, the total population of the study sample was the adequate and attainable number of companies listed at NIKKEI Stock market. The research specific target industries were food, electric machinery chemicals, information &communication, construction, information &communication, and retail sector (Mukhopadhyay & Gupta, 2014).  In most instances, industries are listed chronologically in the Toyo Keizai database. As a result, the process of identifying the research sample was relatively simple. Besides, Toyo Keizai database have a notable benefits in supporting the identification of the market operations and strategies.  Therefore, the act of considering six popular industries revolves around the need to collect reliable information that could adequately respond to the research question. The six popular industries also enhanced the gathering of adequate amount of information.
Therefore, although there are numerous strategies for identifying the research sample, the researcher adopted the stratified random sampling. The stratified random sampling supported the division and integration of different companies in a particular industry. The division and integration of different industries reduced the process of undertaking the research (Perdomo & Escobar, 2011).  The stratified random sampling was also significant in granting all companies an equal opportunity to participate in the study. The plan also ensured that the researcher collected information from credible sources in the Toyo Keizai data. Besides, the approach supported the identification of the most appropriate and reliable sources of information. Therefore, based on the accessible data the stratified random sampling is the most relevant approach since it has proven to be perfect and most reliable strategy and method that can target heterogeneous (Beck et al., 2013). The stratified random sampling also reduces the process and challenges that emerge during the collection and analysis of information and data from varying target population. The approach also supports the division of the research population into manageable and smaller groups.  For instance, the research had limited time and resources to undertake and analyse the research findings (Beck et al., 2013). As a result, the researcher required a manageable sample that can respond to the research problem. Therefore, the stratified random sampling supported the collection of research data from the required population.
The research also uses stratified random sampling strategy to gather and analyse specific information from the target population (Beck et al., 2013). Precisely, the strategy supports the gathering of reliable information on the target population’s operational strategies. In most instances, the understanding of the target population’s marketing and operation plans is significant in supporting the understanding of the study’s topic. Therefore, the research relies on information from companies that are listed on the Japan's NIKKEI Stock Market. Ideally, companies listed in the Japan's NIKKEI Stock Market are the most productive firms the Japanese market. The companies also have detailed information in the social corporate governance strategies and expansion plans (Priyanka, 2013).  
Therefore, in the data analysis stage the researcher randomly identify gathered information from some companies from the six identified industries.  The analysis of the information gathered from the identified samples support the understanding of effects and implications of human resource utilization and CG on the FP of the industrial firms listed in Japan’s NIKKEI Stock Market (Reverte, 2009).  Software analysis using SPSS was also conducted for the information acquired from participants on their innovative and strategic plans on CSR from the years 2013 to 2015. The researcher also analyse information collected on the companies’ financial information and performance in the last two years. The researcher also has the mandate to protect the privacy of the collected and analysed data (Beck et al., 2013). The protection of the privacy of the collected data will be significant in reducing the possibilities of unnecessary ethical issues. In most instances, researchers have ethical duties to protect the privacy of the gathered information. Researchers also have the role of acquiring information from respondents on the most effective means to protect the collected information (Beck et al., 2013). Therefore, the assurance of the maximum level of security on private information will advance participants’ confidence and ability to participate in the research. The identification of the most reliable sampling strategies is also significant in supporting the gathering of credible data from the research sample (Robson & McCartan, 2016).  The collection of adequate information from the identified research sample also enhances the applicability of the research findings.  
Graphic organizers are a crucial component in the tabulation of coded data from a research study. The graphics include features such as Histograms, charts, graphs, and tables. The researcher presents the tabulation of the data on the influence of Corporate Governance (CG) and Human Resource Practices (HRP) on the Financial Performance (FP) of the Japanese industries in the stock market through tables and graphs (Tanaka, 2015). The graphics also enable other individuals to gather in-depth insights on a study’s crucial finding and results (Beck et al., 2013). The graphics also help in postulating the existing relationship between the study variables. Therefore, graphics are essential in the presentation of research data on the investigation of a particular phenomenon.
Initial results analysis indicates that with regards to the case summaries, 443 companies were reviewed in 2013, 487 companies in 2014 and 522 companies in 2015 for a total of 1452 companies reviewed over the three years period (see Table 2).
Table 2. Case summaries
 
Year    Type of Industry    HR Utilization    Corporate governance    CSR Total    Financial performance Total       
2013    Chemicals    72    72    72    72       
     Construction    50    50    50    50       
     Electric Machinery    104    104    104    104       
     Foods    49    49    49    49       
     Information & Communication    79    79    79    79       
     Retail    89    89    89    89       
     Total    443    443    443    443       
2014    Chemicals    85    85    85    85       
     Construction    58    58    58    58       
     Electric Machinery    108    108    108    108       
     Foods    49    49    49    49       
     Information & Communication    85    85    85    85       
     Retail    102    102    102    102       
     Total    487    487    487    487       
2015    Chemicals    96    96    96    96       
     Construction    61    61    61    61       
     Electric Machinery    111    111    111    111       
     Foods    50    50    50    50       
     Information & Communication    98    98    98    98       
     Retail    106    106    106    106       
     Total    522    522    522    522       
Totals    Chemicals    253    253    253    253       
     Construction    169    169    169    169       
     Electric Machinery    323    323    323    323       
     Foods    148    148    148    148       
     Information & Communication    262    262    262    262       
     Retail    297    297    297    297       
     Total    1452    1452    1452    1452    

Additional analysis of the results reveals that in 2013, the chemical industry reported a CSR total mean of 13.94 (Std. Dev. = 4.531, n=72) that was slightly lower than the mean for the financial performance total of 13.99 (Std. Dev. = 4.329, n=72), but higher than the mean for the corporate governance at 3.43 (Std. Dev. = 1.372, n=72) and human resources utilization at 3.46 (Std. Dev. = 1.404, n=72). The information and communication industry presented comparable results whereby the CSR total mean was reported at 10.13 (Std. Dev. = 4.936, n=79) that was lower than the mean for the financial performance total of 12.8 (Std. Dev. = 3.447, n=79), but higher than the mean for the corporate governance at 2.67 (Std. Dev. = 1.337, n=79) and human resources utilization at 2.78 (Std. Dev. = 1.465, n=79). The same trend was noted for the retail industry whereby the CSR total mean was reported at 9.66 (Std. Dev. = 4.822, n=89) that was lower than the mean for the financial performance total of 11.93 (Std. Dev. = 3.313, n=89), but higher than the mean for the corporate governance at 2.52 (Std. Dev. = 1.478, n=89) and human resources utilization at 2.39 (Std. Dev. = 1.459, n=89). In contrast, the construction industry reported a CSR total mean of 13.44 (Std. Dev. = 4.321, n=50) that was higher than the mean for the financial performance total of 11.64 (Std. Dev. = 2.38, n=50), but higher than the mean for the corporate governance at 3.44 (Std. Dev. = 1.264, n=50) and human resources utilization at 2.98 (Std. Dev. = 1.407, n=50). Similar results are noted in the electric machinery industry where a CSR total mean of 15.02 (Std. Dev. = 6.834, n=104) that was higher than the mean for the financial performance total of 12.68 (Std. Dev. = 3.227, n=104), but higher than the mean for the corporate governance at 3.46 (Std. Dev. = 1.434, n=104) and human resources utilization at 3.89 (Std. Dev. = 5.057, n=104). The food industry reported CSR results that were close to the financial performance totals such that the CSR total mean was 13.61 (Std. Dev. = 5.09, n=49) making it slightly higher than the mean for the financial performance total of 13.51 (Std. Dev. = 2.551, n=49), but higher than the mean for the corporate governance at 3.24 (Std. Dev. = 1.507, n=49) and human resources utilization at 3.31 (Std. Dev. = 1.517, n=49) (see Appendix V).
The results noted for 2014 reveals that the chemical industry reported a CSR total mean of 12.76 (Std. Dev. = 5.808, n=85) that was slightly lower than the mean for the financial performance total of 13.32 (Std. Dev. = 2.85, n=85), but higher than the mean for the corporate governance at 3.09 (Std. Dev. = 1.548, n=85) and human resources utilization at 3.22 (Std. Dev. = 1.499, n=85). The information and communication industry presented comparable results whereby the CSR total mean was reported at 10.16 (Std. Dev. = 5.042, n=85) that was lower than the mean for the financial performance total of 12.6 (Std. Dev. = 3.787, n=85), but higher than the mean for the corporate governance at 2.52 (Std. Dev. = 1.377, n=85) and human resources utilization at 2.81 (Std. Dev. = 1.418, n=85). The same trend was noted for the retail industry whereby the CSR total mean was reported at 8.82 (Std. Dev. = 5.532, n=102) that was lower than the mean for the financial performance total of 11.54 (Std. Dev. = 3.226, n=102), but higher than the mean for the corporate governance at 2.13 (Std. Dev. = 1.474, n=102) and human resources utilization at 2.32 (Std. Dev. = 1.504, n=102). In contrast, the construction industry reported a CSR total mean of 11.59 (Std. Dev. = 6.224, n=58) that was slightly higher than the mean for the financial performance total of 11 (Std. Dev. = 3.377, n=58), but higher than the mean for the corporate governance at 2.81 (Std. Dev. = 1.616, n=58) and human resources utilization at 2.69 (Std. Dev. = 1.524, n=58). Similar results are noted in the electric machinery industry where a CSR total mean of 13.52 (Std. Dev. = 5.889, n=108) that was higher than the mean for the financial performance total of 12.69 (Std. Dev. = 3.49, n=108), and even higher than the mean for the corporate governance at 3.22 (Std. Dev. = 1.487, n=108) and human resources utilization at 3.33 (Std. Dev. = 1.516, n=108). The food industry reported CSR results that were than the financial performance totals such that the CSR total mean was 13.31 (Std. Dev. = 5.774, n=49) making it slightly higher than the mean for the financial performance total of 12.67 (Std. Dev. = 2.672, n=49), and even higher than the mean for the corporate governance at 3.2 (Std. Dev. = 1.486, n=49) and human resources utilization at 3.39 (Std. Dev. = 1.497, n=49) (see Appendix VI).
Analysis of the results reveals that in 2015, the chemical industry reported a CSR total mean of 11.53 (Std. Dev. = 6.853, n=96) that was lower than the mean for the financial performance total of 12.98 (Std. Dev. = 2.92, n=96), but higher than the mean for the corporate governance at 2.8 (Std. Dev. = 1.769, n=96) and human resources utilization at 2.9 (Std. Dev. = 1.75, n=96). The information and communication industry presented comparable results whereby the CSR total mean was reported at 8.81 (Std. Dev. = 6.129, n=98) that was lower than the mean for the financial performance total of 12.81 (Std. Dev. = 3.525, n=98), but higher than the mean for the corporate governance at 2.2 (Std. Dev. = 1.631, n=98) and human resources utilization at 2.4 (Std. Dev. = 1.673, n=98). The same trend was noted for the retail industry whereby the CSR total mean was reported at 7.95 (Std. Dev. = 6.037, n=106) that was lower than the mean for the financial performance total of 11.65 (Std. Dev. = 3.289, n=106), but higher than the mean for the corporate governance at 1.94 (Std. Dev. = 1.566, n=106) and human resources utilization at 2.08 (Std. Dev. = 1.683, n=106). The construction industry reported a CSR total mean of 10.66 (Std. Dev. = 6.77, n=61) that was lower than the mean for the financial performance total of 12.25 (Std. Dev. = 2.981, n=61), but higher than the mean for the corporate governance at 2.7 (Std. Dev. = 1.801, n=61) and human resources utilization at 2.38 (Std. Dev. = 1.604, n=61). Contrasting results are noted in the electric machinery industry where a CSR total mean of 13.69 (Std. Dev. = 5.657, n=111) that was higher than the mean for the financial performance total of 12.6 (Std. Dev. = 3.776, n=111), but higher than the mean for the corporate governance at 3.23 (Std. Dev. = 1.5458, n=111) and human resources utilization at 3.36 (Std. Dev. = 1.404, n=72). The food industry reported CSR results that were close to the financial performance totals such that the CSR total mean was 12.7 (Std. Dev. = 6.172, n=50) making it slightly lower than the mean for the financial performance total of 12.72 (Std. Dev. = 2.814, n=50), but higher than the mean for the corporate governance at 3.04 (Std. Dev. = 1.564, n=50) and human resources utilization at 3.18 (Std. Dev. = 1.65, n=50) (see Appendix VII). The results make it clear that although there may be some link between corporate governance, CSR and financial performance, that link varies dependent on the specific industry.
The results were further subjected to modeling that sought to determine whether or not the relationship between human resource utilization, corporate governance, CSR and financial performance could be modelled. The modeling presented a correlation coefficient of 0.125 to indicate that human resource utilization, corporate governance and CSR totals could be used to predict financial performance totals. In fact, Figure 1 shows the individual data points and their distribution (see Tables 3 & 4; Figures 1 & 2).

Table 3. Model fit for the relationship between human resource utilization, corporate governance, CSR as the independent variable and financial performance as the dependent variable
 
Fit Statistic    Mean    Minimum    Maximum    Percentile       
                    5    10    25    50    75    90    95       
Stationary R-squared    .125    .125    .125    .125    .125    .125    .125    .125    .125    .125       
R-squared    .125    .125    .125    .125    .125    .125    .125    .125    .125    .125       
RMSE    3. 084    3. 084    3. 084    3. 084    3. 084    3. 084    3. 084    3. 084    3. 084    3. 084       
MAPE    23.492    23.492    23.492    23.492    23.492    23.492    23.492    23.492    23.492    23.492       
MaxAPE    315.735    315.735    315.735    315.735    315.735    315.735    315.735    315.735    315.735    315.735       
MAE    2.461    2.461    2.461    2.461    2.461    2.461    2.461    2.461    2.461    2.461       
MaxAE    10.657    10.657    10.657    10.657    10.657    10.657    10.657    10.657    10.657    10.657       
Normalized BIC    2.287    2.287    2.287    2.287    2.287    2.287    2.287    2.287    2.287    2.287    


Table 4. Model statistics for the relationship between human resource utilization, corporate governance, CSR as the independent variable and financial performance as the dependent variable
 
Model    Number of Predictors    Model Fit statistics    Ljung-Box Q(18)    Number of Outliers       
          R-squared    Statistics    DF    Sig.            
Financial performance Total-Model_1    2    .125    20.424    16    .202    0    



 
Figure 1. Visual presentation of the relationship between human resource utilization, corporate governance, CSR as the independent variable and financial performance as the dependent variable
 
Figure 2. Model summary relationship between human resource utilization, corporate governance, CSR as the independent variable and financial performance as the dependent variable
The computations indicate that corporate governance and human resource practices are crucial elements that support to the financial performance of the Japanese construction industries in the stock market. The relationship is seen in the correlation calculations. Ideally, corporate governance revolves around the adoption of suitable policies that enhance the proficient utilization of an organization’s resource towards the set objectives (Beck et al., 2013). Corporate Governance also facilitates the creation and development of teamwork within an organization’s workforce thus sustaining the firm’s impressive performance in the global market (Beck et al., 2013). Human Resource practices are also an essential element that leads to a firm’s sustainability and dominance in the stock market. The adoption of appropriate practices in corporate governance and human resources practices has led to significant correlation between CSR and financial performance as seen in the model presented in Tables 3 and 4. The correlation coefficient determined at 0.125 indicates that CG and HRP practices within firms influence the monetary performance (Vicente, Fátima de & Felipe Cortes, 2011). Consequently, managers should embrace suitable policies in CG and HRP to enhance their companies’ financial performance and survival in the stock market (Beck et al., 2013). The correlation further reveals that the managers in the construction sector should formulate stronger policies in CG and HRP to support growth in the financial performance within the NIKKEI stock market.
Behavior analysts further reveal that suitable and realistic HR practices lead to the motivation of the employees thus sustaining a firm’s competitive edge. The adoption of proficient HRP practices also leads to the sustainment of the employees’ social needs thus leading to the generation of new and distinct ideas that lead to the impressive performance of a firm in the stock market (Vicente, Fátima de & Felipe Cortes, 2011). Suitable practices in corporate governance and human resource instills confidence among investors to buy the stock from the industries. However, the management should undertake a need assessment to identify the areas that require change to facilitate a high correlation between the monetary performance and HRP in the Japanese industries in the stock market. The evaluation reveals the adoption of the appropriate corporate governance techniques, HR practices, and the financial performance leads to the success of the Japanese industries (Beck et al., 2013).
The modelling results reveal that the adoption of proficient CG and HRP approaches highly influences the financial performance of a particular industry in the stock market. In most instances, corporate governance revolves around the formulation of appropriate approaches to motivate the stakeholders within an organization towards sustaining the set strategic plan (Vicente, Fátima de & Felipe Cortes, 2011). Corporate governance also ensures that a particular firm embraces the appropriate techniques that enable the organization to address the emerging changes in the market dynamics. Human resource practices are also essential towards sustaining an organization’s financial performance (Vicente, Fátima de & Felipe Cortes, 2011). The practices ensure that an organization’s employees have a high morale towards achieving the set organizational objectives. The proficient intertwining of corporate governance and human resource practices also leads to the creation of a constructive working arena leading to the increase in operational results (Beck et al., 2013). The graphics affirm that efficient intertwining of the two elements is a key factor that has led to the impressive monetary performance of the diverse array of Japanese industries in the NIKKEI stock market.
Confirmatory Factor Analysis (CFA)
CFA has been conducted by performing chi-square tests then dividing the results by the degree of freedom. The basis on which the test is performed is that: CSR is a major determinant of financial performance. A measure of chi-square result divided by the degree of freedom gives us a figure that determines the goodness of fit. Figures of less than 3 show good fit, those between 3 and 5 show permissible fit while those greater than 5 show no fit. All the calculated figures are less than 3, with the information and communication industry presenting the lowest goodness of fit figure at 1.1211 while the food industry presents the highest goodness of fit figure at 1.5667 (see Table 5). This makes it clear that increasing CSR results in an increase in financial performance, with the reverse being equally true.
Table 5. Chi-square test results
 
Type of Industry        Value    df    Asymp. Sig. (2-sided)    Goodness of Fit (value/df)       
Chemicals    Pearson Chi-Square    302.341a    224    .000    1.3497       
     Likelihood Ratio    260.413    224    .048           
     Linear-by-Linear Association    50.837    1    .000           
     N of Valid Cases    253                   
Construction    Pearson Chi-Square    303.386b    247    .008    1.2283       
     Likelihood Ratio    239.612    247    .620           
     Linear-by-Linear Association    14.256    1    .000           
     N of Valid Cases    169                   
Electric Machinery    Pearson Chi-Square    507.620c    324    .000    1.5667       
     Likelihood Ratio    306.614    324    .748           
     Linear-by-Linear Association    12.481    1    .000           
     N of Valid Cases    323                   
Foods    Pearson Chi-Square    391.507d    255    .000    1.5353       
     Likelihood Ratio    242.912    255    .696           
     Linear-by-Linear Association    30.532    1    .000           
     N of Valid Cases    148                   
Information & Communication    Pearson Chi-Square    403.590e    360    .056    1.1211       
     Likelihood Ratio    309.940    360    .973           
     Linear-by-Linear Association    28.205    1    .000           
     N of Valid Cases    262                   
Retail    Pearson Chi-Square    508.103f    340    .000    1.4956       
     Likelihood Ratio    330.503    340    .634           
     Linear-by-Linear Association    22.644    1    .000           
     N of Valid Cases    297                   
Total    Pearson Chi-Square    785.670g    378    .000    2.0785       
     Likelihood Ratio    622.732    378    .000           
     Linear-by-Linear Association    148.378    1    .000           
     N of Valid Cases    1452                   
a. 254 cells (99.6%) have expected count less than 5. The minimum expected count is .01.
b. 280 cells (100.0%) have expected count less than 5. The minimum expected count is .01.
c. 358 cells (99.2%) have expected count less than 5. The minimum expected count is .00.
d. 288 cells (100.0%) have expected count less than 5. The minimum expected count is .01.
e. 399 cells (100.0%) have expected count less than 5. The minimum expected count is .01.
f. 373 cells (98.7%) have expected count less than 5. The minimum expected count is .00.
g. 302 cells (72.2%) have expected count less than 5. The minimum expected count is .00.    

Evaluating the Data Analysis Procedure
Data analysis is a component that leads to the generation of accurate findings on a particular research study. The adoption of an appropriate research procedure enables the researcher to determine the existing relationship between the variables. The data analysis procedure also helps in the generation of appropriate results and recommendation on a particular research phenomenon (Vicente, Fátima de & Felipe Cortes, 2011). As a result, the researcher used various data analysis procedures to investigate the influence of business element such as Corporate Governance and Human resource practices to the financial performance of the Japanese automobile industries (Beck et al., 2013). For instance, the researcher used the Pearson’s correlation co-efficient to analyze the existing relationship between factors such as corporate governance and human resource practices. Pearson’s correlation co-efficient enables the individual accurately determine the existing relationship between the study’s variables (Beck et al., 2013). Researchers further indicate that Pearson’s correlation coefficient enables a researcher to generate accurate and reliable results. The analysis from the Pearson’s correlation further affirms that a positive correlation exists between the adoption of appropriate corporate governance policies and Human resource practices (Vicente, Fátima de & Felipe Cortes, 2011). The analysis further indicates that appropriate business approaches have led to the massive success and sustainable financial performance of Japanese industries in the construction, food, and information technology in the NIKKEI stock market.
The researcher also used the model to assess the nature of the relationship between the variables (Beck et al., 2013). The model revolves around the tabulation of the coded data in tables and graph. The model reveals that a positive relationship exists between the adoption of suitable policies such as corporate governance and HR practices in the success of diverse Japanese firms in the stock market (Waddock & Samuel, 1997). Research analysts and experts further postulates that the model enables the researcher to determine correlation between the variables. The model on the investigation of diverse element such as corporate governance and HR practices indicate the existence of a weak positive relationship. Consequently, the management teams of the relevant industries should formulate effective measures to align the diverse functions of corporate governance and HR practices to the business operations (Beck et al., 2013). Business analysts reveal that an alignment of the approaches will leads to massive growth of the fiscal success of the Japanese firms in the NIKKEI stock market.
The researcher undertook an extensive research on the Japanese industries’ performance in the stock market. The analysis enabled the researcher to collect data on the impact of corporate governance and HR practices to the financial performance of the industries. The data formed a crucial reference point during the coding and tabulation. The data further enabled the researcher to generate accurate data on the existing correlation between the monetary performance of the diverse Japanese industries and business techniques such as corporate governance and HR practices (Beck et al., 2013). The researcher also interviewed the relevant stakeholders in the industries to gather in-depth insights on the effects of the business approaches to the financial performance. The managers also enabled the researcher to gather essential knowledge on the importance of an appropriate business strategy in enhancing the financial competitive edge of a particular organization (Beck et al., 2013). The researcher also undertook a tryout of the measuring instruments to enhance the reliability and accuracy of the data.
The occurrence of various errors hinders the collection and analysis of data in a systematic and scientifically accredited manner, the researcher during the investigation on the factors that lead to the impressive financial performance of the Japanese industries in the NIKKEI stock market encountered various errors. The errors include sampling, population specification, non-response, and selection error (Beck et al., 2013). For instance, the researcher lacked the ability to identify the appropriate sample size that would facilitate the generalizations of the findings to other samples. The researcher also lacked an appropriate scheme to identify the relevant stakeholders that could participate in the study (Yu, 2012). Research experts reveal that the lack of an appropriate policy also leads to bias in the selection of the study’s samples. The researcher further postulated that overreliance on the financial performance records of the diverse Japanese industries in the stock market. The overreliance may have led to the collection of data that lacked essential insights on the correlation between appropriate corporate governance approaches, human resource practices, and financial performance (Yu, 2012). The respondents’ response is also a critical element that enables researcher to gather accurate data on a particular phenomenon. However, behavior psychologists indicate that respondents tend to behave differently while under keen scrutiny from the researcher. The negative behavior change hinders the collection of accurate and reliable data on a particular research phenomenon (Beck et al., 2013).
The data analysis techniques also positively align with the research questions. The researcher uses the Pearson’s correlation coefficient to help in the identification of a positive relationship that helps in generating credible answers to the following research questions.
Research Questions and Hypotheses
The study will focus on two broad research questions:
RQ1: What is the link between corporate governance and a firm’s financial performance of industrial firms in Japan’s NIKKEI Stock Market? This question seeks to examine the implication of a company's corporate governance and the financial performance: does a business become more profitable with improved management culture?
RQ2: What are the association of HR utilization and the monetary returns of industrial firms in Japan’s NIKKEI Stock Market? In this case, the study seeks to establish whether there are significant monetary returns when businesses employ best HR practices.
RQ1: What is the link between corporate governance and a firm’s financial performance of industrial firms in Japan’s NIKKEI Stock Market?
H1a: There is a significant relationship between corporate governance and firm financial performance of industrial firms in Japan’s NIKKEI Stock Market.
H10: There is no relation between company governance and monetary returns of industrial firms in Japan’s NIKKEI Stock Market.
RQ2: What are the association of HR utilization and the monetary returns of industrial firms in Japan’s NIKKEI Stock Market?
H2a: There is a considerable link between HR utilization and financial output of industrial firms in Japan's NIKKEI Stock Market.
H20: There is no considerable link between HR utilization and the profitability of industrial firms in Japan's NIKKEI Stock Market.
Results Interpretation
The analysis indicates that a positive correlation exists between the application of suitable corporate governance, HR practices, and financial performance of the Japanese industries in sectors such as food, construction, and information technology (Beck et al., 2013). The results also correlate with the finding from the literature review that indicates the importance of corporate governance and human resource practices towards sustaining the competitive edge of firm in the contemporary society. The literature review postulates that the adoption of effective governance techniques enhances the efficient utilization of the available resources towards the set projects. Suitable corporate techniques also enhance the creation of a favorable working environment that sustains the employees’ efforts leading to high operational results (Beck et al., 2013). The researcher used modeling approaches to evaluate the relationship between CSR and financial performance as variables (Yu, 2012). The researcher also ensured that the results helped in answering the research questions.
Results for Research Question 1
RQ1: What is the link between corporate governance and a firm’s financial performance of industrial firms in Japan’s NIKKEI Stock Market?
The data analysis reveals that embracing suitable corporate governance techniques has led to the impressive performance of diverse Japanese firm in the stock market. Ideally, corporate governance revolves around the suitable allocation and utilization of the available resources within an organization in fulfilling the set objectives. Efficient utilization of resources translates into an organization’s massive dominance and profitability (Beck et al., 2013). Financial experts also indicate that investors prefer spending their money on companies that have an established corporate governance approach. The analysis reveals that the approach influences the monetary performance of Japanese industries in diverse sectors such as food, construction, and information management.
Results for Research Question 2
RQ2: What are the association of HR utilization and the monetary returns of industrial firms in Japan’s NIKKEI Stock Market?
The analysis further reveals that the adoption of appropriate HR practices leads to the impressive performance of the Japanese industries. Ideally, human resource revolves around the formulation of suitable strategies that address the emerging needs among the workforce (Beck et al., 2013). The policy also focuses on aligning the employees’ objectives with the set organizational goals. Human Resource also involves the formulation of suitable reward systems to help in sustain the workforce morale towards achieving the set objectives. The approach also leads to the coordination of diverse elements within an organization in working towards the attainment of the set objectives (Beck et al., 2013). Human Resource is also a critical procedure that facilitates the acquisition and recruitment of experienced and high-qualified staff that work diligently towards the accomplishment of an organization’s goals (Yu, 2012). A proficient human resource technique also enhances the involvement of the employees in key decision-making processes thus reducing resistance towards various organizational projects (Beck et al., 2013). A proficient HR system also enhances the timely resolution of a diverse array of conflicts that emerge among the employees at the workplace. Consequently, an appropriate HR policy leads to a firm’s impressive performance in the stock market (Beck et al., 2013). Therefore, the adoption of suitable HR techniques is essential in enhancing an organization’s competitive edge and impressive financial performance in the stock market.
The analysis reveals that a positive relationship exists between the adoption of suitable practices in CG and HRP and the financial performance of Japanese firms. The analysis helps in affirming the research finding that postulate the importance of an efficient organization culture in sustaining the profitability, revenue collection, and impressive performance in the stock market. The analysis also affirms that a suitable organizational culture is crucial in enhancing the monetary performance of a particular industry in the intricate global market (Beck et al., 2013). However, the analysis reveals that management teams in the diverse industries should continuously formulate effective policies and increase their profit margin in the stock market (Beck et al., 2013).
Summary
The study reveals that a positive correlation exists between the adoption of suitable corporate governance and HR policies towards the success of Japanese industries in the NIKKEI stock market. The analysis affirms that the business firms in Japan are constantly facing stiff competition in the stock market. The business firms are also witnessing dynamic revolutions in the investors’ inclinations. As a result, the management teams are constantly formulating proficient approaches in corporate governance and Human Resource to sustain the firms. The available literature also reveals that Human Resource practices lead to the maintenance of the workforce morale towards the achievement of a company’s objectives. Effective Human resource practices also enhance the coordination of the available resources towards the timely achievement of diverse objectives within the Japanese firms.
Corporate governance is a term that denotes a business organization acting in an environmentally, socially, and economically responsible way, and transparently. In reference to that, a socially responsible business organization would assess and take responsibility for whatever effects its operations have on the local economy, environment, and social welfare. In this case, the activities pertaining to governance may involve incurring short-term costs that do not result in immediate financial benefit for the company. In essence, corporate governance may not make immediate financial sense to the company, since it involves engaging in activities that go beyond those mandated by local, national and international regulations, but they would allow the company to increase its share prices and overall income. For that matter, most corporate governance activities would involve the company engaging in projects and initiatives that are managed by the community that hosts them. For instance, some of the corporate governance activities would include assigning specific percentages of profits to fund community-based initiatives. Thus, corporate governance entails a business organization acting transparently and in an environmentally, socially, and economically responsible way (Benabou & Tirole, 2010).
Business organizations have linked governance to financial performance. Presently, a larger percentage of business organizations are grasping that their ability to remain relevant, competitive, and productive in the dynamic business environment is directly correlated to their commitment to governance. In the 20 years, the concept of globalization has eliminated national borders with advances in technology masking distances and accelerating time. Given this changing business environment, business organization want to meet their financial responsibilities of increasing their capacity to administer and regulate their risks and profits, and to guard their brands reputations. In addition, the aggressive competition for customer loyalty, investors and skilled labor have further underpinned the need for the adoption of a corporate governance. Thus, a business organization’s performance in relations to its association with its marketplace, host community, and employees greatly influence the sustainability of its success and performance (Benabou & Tirole, 2010).
Corporate governance techniques involve the adoption of effective policies that ensure the efficient utilization of an organization’s resources towards sustaining objectives. The techniques also revolve around the adoption of a proficient management style and approach that enhances the coordination of the relevant stakeholders within a firm. Empirical data affirms that a large number of Japanese firm embrace the Total Quality Management (TQM) concept to ensure that the employees work towards the continuous improvement of the existing products and services. The techniques also enhance the utilization of the available resources towards achieving various strategic plans. Consequently, the adoption of appropriate governance techniques revolves around embracing appropriate marketing techniques to enhance the awareness of a company’s products to individuals from diverse backgrounds. The techniques also ensure that the organization from collaborative relationships with other stakeholders to enhance their success and bring about an increase in the market share. Financial analysts indicate that the adoption of the corporate governance techniques has led to the massive dominance of the food, construction, and information industries in the stock market. The computation further reveals that the adoption of suitable technique is a key factor towards the success of the industries.
The study further reveals that suitable HR practices have led to the impressive financial performance of the Japanese firms in the NIKKEI stock market. A proficient HR policy aims at creating a constructive working environment through the formulation of a suitable rewards system that enhances the employees’ morale towards working diligently for the timely fulfillment of the set objectives within the Japanese firms.
Appropriate HR policies also ensure that firms select and recruit qualified staff. The adoption of suitable HR policies also ensures that Japanese firms reduce the rate of experienced staffs’ turnover. An appropriate HR policy also improves the firm’s social rating among members of the public leading to impressive performance and high appeal to potential investors (Vicente, Fátima de & Felipe Cortes, 2011). Besides, business analysts indicate that an appropriate HR policy enables investors to associate with the firm hence translating to an impressive performance in the stock market.
Essentially, the adoption of suitable policies in corporate governance and Human Resource are key components towards the impressive financial performance of the Japanese firms in the NIKKEI market. However, the firms should continuously embrace policies that address the emerging trends to sustain their competitive edge in the stock market. The analysis on data analysis lays a formidable reference point to the formulation of appropriate recommendations and conclusions.


APPENDICES
Appendix I: Corporate Governance
This list incorporates various aspects of governance within an organization. The different measures are ranked based on TOYO KEIZAI CSR Ranking on a score of 600 points. It helps to show how each aspect is influential in the overall CSR of an organization (Toyo Keizai, 2013; Toyo Keizai, 2016).
Definition of Materiality of CSR Activities
Stakeholder Engagement
Third Party Involvement in Activity Report
Establishment of CSR Department
Appointment of CSR Officer
Worksites Overseen by CSR Officer
Documentation of CSR Policy
IR Department
Legal Compliance Department
Worldwide Participation in CSR-related Standards
Establishment of Internal Audit Division
Establishment of Whistleblower Hotline (Internal and External)
Establishment of Rules on Protection of Whistleblowers’ Rights
Disclosure of Number of Cases of Whistle blowing and Internal Reporting
Cease and Desist Notices from the Japan Fair Trade Commission or Other Government Bodies
Suspension of Operations/Business Due to Misconduct, etc.
Criminal Prosecution of Legal Incidents or Mishaps
Policy on Anti-Corruption and Anti-Bribery Measures
Disclosure of Political Contributions, etc.
Establishment of Internal Control Committee
Evaluation of Internal Controls
Formulation of Security Policy on Information Systems
Status of Internal Audits of Information System Security
Status of External Audits of Information System Security
Privacy Policy
Risk Management and Crisis Management System
Basic Policy on Risk Management and Crisis Management
Existence of Response Manual on Risk Management and Crisis Management
Person in Charge of the Risk Management and Crisis Management System
Creation of BCM
Formulation of BCP
Status of Measures Taken for Risk Management and Crisis Management
Documentation and Disclosure of Business Ethics Policies
Code of Conduct, Standards and Manuals on Ethics

Appendix II: HR Utilization
This list incorporates various aspects of human resource rates of utilization within various organizations. The different rates are ranked according to the TOYO KEIZAI CSR Ranking on a score of 600 points from various companies operating in different industries. It helps to show how each aspect is influential in the overall CSR of an organization (Toyo Keizai, 2013; Toyo Keizai,2016).
Female Employee Ratio
Turnover
Overtime Hours
Existence of Non-Japanese Management Positions
Ratio of Female Management Positions
Ratio of Female General Manager or Higher Positions
Appointment of Female Officers
Basic Principles for Promoting Diversity
Management Policy on Respect for Diversity
Dedicated Department for Appointment of Diverse Human Resources
Disabled Persons Employment Ratio (Actual)
Disabled Persons Employment Ratio Target
Employment until 65
Response to LGBT
Paid Leave Acquisition Rate
Maternity Leave Duration
Maternity Leave Takers
Child Care Leave Takers
Male Child Care Leave Takers
Maternity and Paternity Leave for Spouses
Elderly Care Leave Takers
Family and Elderly Care Leave
Re-Employment of Employees Who Resigned Due to Pregnancy or Childbirth, etc.
Unique Work-Life Balance Support Systems
Flexible Work Programs
Employee Incentive Programs
Occupational Health and Safety Management System
Occupational Health and Safety Award History
Industrial Accident Frequency Rate
Number of Employees on Leave Due to Mental Health Issues
Policy on Respect for Human Rights
Measures Regarding Respect for Human Rights
Management Respecting ILO Core Labor Standards
Response to Four ILO Core Labor Standards Fields
Disclosure of Employee Evaluation Standards
Disclosure of Results of Skill Evaluation to Relevant Employee
Employee Satisfaction Survey
Retention of New Graduate Recruits
Disclosure of Occurrences of Labor Problems

Appendix III: Financial Performance
This list incorporates various aspects of financial performance within various organizations. The different rates are ranked according to the TOYO KEIZAI CSR Ranking on a scoring system from various companies operating in different industries. It helps to show how each aspect is influential in the overall performance of an organization (Toyo Keizai, 2013; Toyo Keizai,2016).
Growth potential
Profitability
Stability
Firm size

Appendix IV: CSR
This list incorporates various aspects of CSR within various organizations. The different rates are ranked according to the TOYO KEIZAI CSR Ranking on a scoring system from various companies operating in different industries. It helps to show how each aspect is influential in the overall performance of an organization (Toyo Keizai, 2013; Toyo Keizai,2016).
HR utilization
Environment
Corporate governance
Sociality


Appendix V: Histogram of corporate governance, CSR total and financial performance total for 2013
 

 
 

 

 

 
 

 

 

 
 
 

 

 
 
 
 

 

 
 
 

 

 
 

Appendix VI: Histogram of corporate governance, CSR total and financial performance total for 2014
 

 

 
 
 

 

 
 

 

 
 

 

 

 

 


 

 

 
 

 

 

 

 
 


Appendix VII: Histogram of corporate governance, CSR total and financial performance total for 2015