Why consolidated data (rather than simply the parent's data alone)?

  1. There exist a number of corporate groups with a parent firm controling other member firms (its subsidiaries and affiliated firms).
    1. Many corporate groups consist of Member firms of Six Horizontal Keiretsu;
    2. There are also corporate groups known as Vertical Keiretsu, such as Toyota keiretu.
  2. All this implies that the parent's financial data alone, such as data on Toyota alone disregarding those on its subsidiaries and affiliated firms, are insufficient and inappropriate to evaluate the parent's corporate performance.
    1. The subsidiaries' and affiliated firms' data as well must be incorporated.
    2. Such consolidated data are most useful for evaluating the group performance.
　

How important are the subsidiaries and affiliated firms in the (consolidated) financial statements of the firms?:
Plots of the number of the consolidated subsidiaries, etc., 1984 - 1997.

    　
  1. The trend as seen in the number of consolidated subsidiaries below is roughly upward for a number of firms. 　
  2. Mfg: Automobile
      　
    1. The number of consolidated subsidiaries exhibits an increasing trend throughout the period from 1984 to 1997, although the trend pattern differs among firms. 　
    2. The number of unconsolidated subsidiaries exhibits a downward trend for some firms (Suzuki, Mb, Toyota, Isuzu, Daihatu, Honda), while the trend is upward for othter firms (Nissan, Mazda, Fuji) .
  3. Non-mfg: General Trading
      　
    1. The number of consolidated subsidiaries exhibits an increasing trend since around 1990-91, while the number of unconsolidated subsidiaries exhibits a downward trend roughly during the same period.
　
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