Keiretsu Affiliation and Share Price Volatility in Japan

Posted: 27 May 2013

See all articles by Dick Beason

Dick Beason

University of Alberta - Department of Marketing, Business Economics & Law

Date Written: May 1, 1997

Abstract

It has been argued that keiretsu affiliation among Japanese firms gives rise to more stable management practices which result in more stable but lower average profits for member firms relative to independent firms. Using financial market performance data, such as the volatility of share prices, we find no evidence to support this hypothesis.

Keywords: Volatility, Keiretsu, Cross holding, Portfolio variance

JEL Classification: G14, G19, G32, P43, C33

Suggested Citation

Beason, Dick, Keiretsu Affiliation and Share Price Volatility in Japan (May 1, 1997). Pacific-Basin Finance Journal, Vol. 6, No. 1-2, 1998, University of Alberta School of Business Research Paper No. 2013-324, Available at SSRN: https://ssrn.com/abstract=2270022

Dick Beason (Contact Author)

University of Alberta - Department of Marketing, Business Economics & Law ( email )

Edmonton, Alberta T6G 2R6
Canada

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