Corporate Restructuring in Japan: An Event-Study Analysis
Electronic Access:
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Summary:
The implementation of the Commercial Rehabilitation Law (CRL) on April 1, 2000 was considered a key event in setting up the official infrastructure supporting corporate restructuring in Japan. This study evaluates the stock price impact of restructuring announcements before and after the CRL implementation using event-study analysis. Following the CRL implementation, the results suggest an improvement in market credibility of restructuring announcements based on improvements in disclosure, mergers, and to a lesser extent, labor force reductions. In contrast, credibility of restructuring announcements aimed at reducing excess capital deteriorated.
Series:
Working Paper No. 2001/202
Subject:
Asset prices Commercial banks Corporate governance Corporate sector Economic sectors Financial institutions Labor Labor force Prices
English
Publication Date:
December 1, 2001
ISBN/ISSN:
9781451874402/1018-5941
Stock No:
WPIEA2000201
Pages:
15
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