Note 2-13

13 In order to look into the impact of performance-based wages, we have matched companies' financial data with findings about their introduction of performance-based wages in a FY2004 questionnaire survey on business behavior. For the estimation, we utilized 1,125 listed companies' unconsolidated panel data between 1995 and 2004. Since a first-phase lag of an explained variable is included into an explaining variable, we have used the Generalized Method of Moments (GMM) procedure proposed by Arellano and Bond for the estimation.