Keiretsu Affiliation and Share Price Volatility in Japan
Posted: 27 May 2013
Date Written: May 1, 1997
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: Suggested Citation