Corporate Restructuring in Japan: An Event-Study Analysis

Posted: 24 Sep 2002 Last revised: 20 Mar 2008

See all articles by Jorge A. Chan-Lau

Jorge A. Chan-Lau

International Monetary Fund (IMF) - International Capital Markets Department; National University of Singapore (NUS) - Risk Management Institute; Tufts University - Fletcher School of Law and Diplomacy

Multiple version iconThere are 2 versions of this paper

Abstract

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 better disclosure, mergers, and to a lesser extent, labor force reductions. In contrast, the credibility of restructuring announcements aimed at reducing excess capital deteriorated.

Keywords: Japan, corporate restructuring, corporate governance, event-study analysis

JEL Classification: G34

Suggested Citation

Chan-Lau, Jorge Antonio, Corporate Restructuring in Japan: An Event-Study Analysis. Japan and the World Economy, Vol. 14, pp. 367-377, December 2002. Available at SSRN: https://ssrn.com/abstract=326420

Jorge Antonio Chan-Lau (Contact Author)

International Monetary Fund (IMF) - International Capital Markets Department ( email )

700 19th Street NW
Washington, DC 20431
United States

National University of Singapore (NUS) - Risk Management Institute ( email )

21 Heng Mui Keng Terrace
Level 4
Singapore, 119613
Singapore

Tufts University - Fletcher School of Law and Diplomacy ( email )

160 Packard Ave
Medford, MA 02155
United States

HOME PAGE: http://fletcher.tufts.edu/ceme/index.shtml

Register to save articles to
your library

Register

Paper statistics

Abstract Views
804
PlumX Metrics