Corporate Restructuring in Japan: An Event-Study Analysis

December 1, 2001

Disclaimer: This Working Paper should not be reported as representing the views of the IMF.The views expressed in this Working Paper are those of the author(s) and do not necessarily represent those of the IMF or IMF policy. Working Papers describe research in progress by the author(s) and are published to elicit comments and to further debate

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.

Subject: Asset prices, Commercial banks, Corporate governance, Corporate sector, Economic sectors, Financial institutions, Labor, Labor force, Prices

Keywords: a number of company, Asset prices, Commercial banks, corporate governance, corporate restructuring, Corporate sector, CRL period, effects of labor force reduction plan, event-study analysis, firm, firms in the bank group, fixed asset, Japan, Labor force, price impact, stock price, stock price effect, WP

Pages:
15
Volume:
2001
DOI:
https://doi.org/10.5089/9781451874402.001
Issue:
202
Series:
Working Paper No. 2001/202
Stock No:
WPIEA2000201
ISBN:
9781451874402
ISSN:
1018-5941

IMF’s Work

RESOURCES

TOPICS

Flagship Publications

Other Publications

IMF reports and publications by country

Regional Offices

All News

See Also

For Journalists

Press Center

RESOURCES

FLAGSHIPS

KEY SERIES

IMF NOTES

Loading component...

IMF Working Papers