Abstract
After World War I, Japanese shipbuilding industry was visited by severe depression. At that time, most of shipbuilding firms in Japan were hard hit in their management by this depression. Mitsubishi Shipbuilding company and Kawasaki Dockyard Co., Ltd. were biggest ones in this industry at that time. But managements of these firms changed for the worse with the advance of the depression. Especially the condition of Kawasaki was severe. This company collapsed as early as the middle of this depression, 1927. On the other hand Mitsubishi was not so severe. Because, it was superior to Kawasaki in building of merchant vesseles. And it selected moderated policy for the depression.This company cut off unprofitable depertments and endeavored to accumulate internal funds. As a result, it could hold huge funds at the end of Taisho era. Policy of Kawasaki was very extreme compared of Mitsubishi's. This company tried to find a way out by extending to new fields one after another. But such policy imposed a big burden on the finance of this company.
