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Copyright of Journal of Entrepreneurship, Management & Innovation is the property of Wyzsza Szkola Biznesu-National Louis University and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

This study highlights the key impacts of hosting an international sports event, Tokyo 2020 Olympic Games, during the period of deadliest contagious disease outbreak in history, COVID 19. The perspective is analysed in terms of the performance of capital market, investment market and sectoral market by the indexes of TOPIX, Stock Market, Bond Market, Foreign Exchange, FTSE, MSCI, and sectoral index of Air Transportation, Construction, Pharmaceutical which shows different range of fluctuation. [ABSTRACT FROM AUTHOR]

Copyright of Innovar: Revista de Ciencias Administrativas y Sociales is the property of Universidad Nacional de Colombia and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

With the RMB becoming the fifth international payment currency and its inclusion in the SDR currency basket, coupled with the opening of China's capital market, RMB-related exchange rates have attracted increasing attention because of China's RMB internationalization strategy. Using the DCC-GARCH model, we investigate how domestic (China) and international (USA, EU, UK, and Japan) policies and situations, including RMB internationalization, U.S. QE, European Debt Crisis, Brexit, and Abenomics, influence co-movement of the USD/CNY and SDR/CNY exchange rates from 2010 to 2017. We analyze the co-movement and provide explicit explanations for distinct areas (unrelated, long-term negative, and abruptly positive co-movement areas). Further, we find that RMB-related exchange rates remain largely influenced by domestic policies, while because of China's opening-up policies they are also influenced by the international situations. Both US and EU policies exert a remarkable influence, but the effects of UK and Japan policies are decreasing. [ABSTRACT FROM AUTHOR]

As constraints on government funding to public universities become a trend in higher education internationally, clarifying the impact of government policies on donor behavior from a comparative perspective is an issue of higher education research. This paper aims to explore the impact of government appropriations and tax policies on macro trends in donations to public research universities in Japan and USA. Panel data of donation revenue to public research universities in both countries is used to answer the following two research questions: (1) whether the trends in capital markets affect the donation revenue of public research universities operating under different tax systems in Japan and USA, and (2) how the level of government support to higher education affects donations to American and Japanese public research universities. The primary finding is that stock prices are positively associated with donations in USA; however, there is no evidence that stock prices have a positive impact on donations to Japanese public research universities. These contrasting results imply that higher stock prices do not always induce donations to universities and that it is important to consider each country's tax structure when looking for possible links between stock prices and donations to universities. Also, donor behavior is independent of the amount of government appropriations received by universities in both Japan and USA; therefore, the recent decreasing trends in government appropriations in both countries do not necessarily attract donors. [ABSTRACT FROM AUTHOR]

The globalization of audit markets not only provides an opportunity for the U.S. Big 4 auditors to establish international expertise through global networks, but it also exposes them to reputation risk arising from the acts of their local partners. We analyze the audit failure of ChuoAoyama, one of the Japanese Big 4 audit firms, and find that its credibility impairment reduced security prices of not only the clients of PricewaterhouseCoopers (PwC), their U.S. affiliate, but also the American clients of all other Big 4 auditors affiliated with the Japanese Big 4. Because the quality of the U.S. audit firms is perceived as superior to that of auditors in other countries, we also analyze the premiums arising from the affiliation with the U.S.-led global audit firm networks. We compare the effect of Andersen’s audit failure with ChuoAoyama’s in Japanese capital markets and find that the magnitude of negative market reactions is larger for Andersen’s failure than for ChuoAoyama’s. Together, these results suggest that global audit firm networks have created a network-wide reputation for their services that is susceptible not only to audit failures of the U.S. Big 4 but also to those of non-U.S. affiliates and that there is a quality premium for the U.S. Big 4 in Japanese markets. Our results provide a rational explanation for PwC’s aggressive efforts to temper the negative impact of ChuoAoyama’s failure on their reputation. [ABSTRACT FROM PUBLISHER]

The purpose of this study is to investigate whether financial markets contribute to the economy when needed. The quantile regression model and causality in variance tests are applied to monthly data from December 1989 to July 2016 for 19 OECD economies. The results confirm that the response of capital markets to economic growth depends more on the state of the economy than the state of the country’s development. Generally, interaction between financial markets and the economy is weak in OECD countries except Japan and Estonia. [ABSTRACT FROM AUTHOR]

In this paper we develop a comprehensive Vector Autoregression Model consisting of five variables; the stock market and price indices of pairs of countries, as well as their bilateral nominal exchange rate. Then, we show that under certain long-run restrictions, our approach encompasses a large number of specifications encountered in the voluminous literature on testing for capital integration with cointegration techniques. This approach minimizes the risk of accepting the null of no cointegration between the equity price indices because of the introduction of additional stochastic trends through the transformation of those indices on a "real or nominal US dollar" basis. Furthermore, other interesting long run specifications emerge either with I(1) only stochastic shocks or with the presence of some I(2) disturbances characterizing the system. We apply the testing methodology on monthly data for the US, UK, Germany, and Japan for the period January 1980-May 2019. The main findings provide partial support in favor of cointegration, and therefore for capital markets integration, among stock market indices when proper attention is given to issues like the identification and temporal stability of the cointegration vectors as well as the choice of units that the stock indices are expressed in. [ABSTRACT FROM AUTHOR]

We assess the impact of initial seeds on the long-run growth of biotechnology startups, including the response of the capital market, in the U.S. and Japan. For this purpose, we collected a comprehensive dataset of the matched sample of listed firms from their foundations to the post-IPO period. We find that the quality of initial seeds predicts significantly both the level and the growth rate of the patent stock as well as those of the asset size of the U.S. startups, even controlling for their alliances and acquisitions, while it predicts only the level of the patent stock for the Japanese startups. Furthermore, the asset growth and the patent stock growth in turn account for the market value performances of the U.S. firms much more significantly than those of the Japanese firms. On the other hand, there are only small differences with respect to the time to IPO and the asset growth through the IPO. These results suggest that higher quality of initial seeds significantly enhanced long-run growth of biotechnology startups in the U.S. but not in Japan, and that the differences in fertility of the initial seeds and in efficiency of the capital market could significantly explain the difference. [ABSTRACT FROM AUTHOR]

We study 154 domestic mergers in Japan during 1977 to 1993. In contrast to U.S. evidence, mergers are viewed favorably by investors of acquiring firms. We document a two-day acquirer abnormal return of 1.2 percent and a mean cumulative abnormal return of 5.4 percent for the duration of the takeover. Announcement returns display a strong positive association with the strength of acquirer's relationships with banks. The benefits of bank relations appear to be greater for firms with poor investment opportunities and when the banking sector is healthy. We conclude that close ties with informed creditors, such as banks, facilitate investment policies that enhance shareholder wealth. [ABSTRACT FROM AUTHOR]

The article focuses on the role of underwriting agreements for issuing stock in the Japanese capital market. The negotiated underwriting method is responsible for over 70% of new equity capital. According to the article, whether or not to choose this method is a question of option valuation; the authors use the Black-Scholes model. It was found that the theoretical values of underwriting in the Japanese capital market are extremely low when compared with actual costs of flotation, which are usually 3.5 percent of the issuing price.

The article focuses on recent developments in the Japanese secondary bond markets triggered by the large volume of government bonds issued since 1975. Outstanding government bonds have made the trading volume in the secondary market increase rapidly and produced the development of interdealer trading. This is the transactions of bonds between securities companies that deal in the over-the-counter market. The author describes the development of these new interdealer markets and how they have increased the efficiency of the markets.

With the transformation of global capital markets, it has become essential for American managers to consider capital market relationships as a part of their overall corporate strategies. This article explores these strategies from the point of view of America's leading industrial competitor, Japan. Japanese firms have forged special business alliances that link banks, shareholders, and trading partners together into coherent groupings of mutual interest. These alliances have resulted in close investor-management relationships quite different from those in the U.S. This in turn has shaped other facets of Japanese business, including its long-term investment strategies and its internal management systems. [ABSTRACT FROM AUTHOR]

We examine the effects of bank-firm relationships on firm performance in Japan. When access to capital markets is limited, close bank-firm ties increase the availability of capital to borrowing firms, but do not lead to higher profitability or growth. The cost of capital of firms with close bank ties is higher than that of their peers. This indicates that most of the benefits from these relationships are appropriated by the banks. Finally, the slow growth rates of bank clients suggest that banks discourage firms from investing in risky, profitable projects. However, liberalization of financial markets reduces the banks' market power. [ABSTRACT FROM AUTHOR]

This paper uses the predictability of monthly excess returns on U.S. and Japanese equity portfolios over the U.S. Treasury bill rate to study the integration of long-term capital markets in these two countries. During the period 1971-1990 similar variables, including the dividend-price ratio and interest rate variables, help to forecast excess returns in each country. In addition, in the 1980's U.S. variables help to forecast excess Japanese stock returns. There is some evidence of common movement in expected excess returns across the two countries, which is suggestive of integration of long-term capital markets. [ABSTRACT FROM AUTHOR]

The paper focuses on two countries, Japan and the U.S., to test the integration of capital markets. In Japan, the enactment of the Foreign Exchange and Foreign Trade Control Law in December of 1980 amounted to a true regime switch that virtually eliminated capital controls. Using multifactor asset pricing models, we show that the price of risk in the U.S. and Japanese stock markets was different before, but not after, the liberalization. This evidence supports the view that governments are the source of international capital market segmentation. [ABSTRACT FROM AUTHOR]

Most of the existing studies on the international capital market are based on a segmented market approach. This approach treats the different national capital markets as separated entities, hardly related to each other. For this reason (under the assumption of market segmentation), comparable capital assets may differ in their return on different national markets. Although market segmentation enjoys a surprisingly large following, it is not the only possible interpretation of the international capital market. The alternative hypothesis, i.e., that prices of capital assets in the international capital market behave as if there is one multinational perfect capital market, should be considered. The one market hypothesis has the advantage of being consistent with much of the accepted economic theory. Also the one market hypothesis is unambiguous where market segmentation can stand for any number of specific imperfect market formations. Market segmentation is widely accepted as the only possible structure of the international capital market. Different currency areas, separated political organizations and trade barriers have been given as a priori evidence for the segmentation of the international capital market. This, however, is not necessarily the case. An examination of the behavior of capital asset prices reveals that the price behavior is consistent with the one market hypothesis. It should be noted, however, that a certain body of data can be consistent with both the one market hypothesis and any one of several specific forms of market segmentation. But as the main theme of this study is to show the validity of the one market approach to the multinational equity market, it is sufficient to show that one cannot reject the one market hypothesis with regard to this market. [ABSTRACT FROM AUTHOR]

There is a common perception that the Japanese takeover market excludes foreign companies. However, this is not because Japanese takeover law has been designed to protect target companies. Comparing Japanese takeover law with the UK Takeover Code and the European Takeover Directive, considered as competitive models, this thematic and content-based investigation reveals that Japan does not have overt anti-takeover legislation. There is no stake-building control to alert a target company; there is no provision against virtual bids; post-bid undertaking is not legally binding on the bidder; the equivalent of the mandatory bid under the UK Takeover Code and the EU Directive is set at a much higher level so making it less costly for a bidder to obtain corporate control; there is no price control to protect minority shareholders. Yet the traditional symbiotic relationship between management and shareholders through cross-shareholdings and shareholder perks remains a major obstacle to a successful unsolicited takeover. Measures under Abe's economic reform of three arrows have been introduced to increase the success of unsolicited takeover bids by reducing cross-shareholdings through tax incentive measures and increasing board independence through a soft-law based governance code. These are unlikely to have a major impact on removing the existing obstacles. Adopting the UK Takeover Code or the EU Takeover Directive would not cure the problem and would more likely entrench the existing situation. [ABSTRACT FROM AUTHOR]

Purpose The Accounting Standards Board of Japan (ASBJ) proposed a new set of endorsed International Financial Reporting Standards in June 2015. ASBJ claims that non-recycling of other comprehensive income (OCI) items decreases the information usefulness of earnings in a proposed comprehensive income standard. There has been no existing empirical evidence which supports the ASBJ’s statement and the purpose of the study is to test whether OCI recycling improves information usefulness of net income from six perspectives: relative and incremental value relevance, persistence, variability, operating cash flow and net income predictive power.Design/methodology/approach This paper is an empirical work using a listed Japanese firms sample of 5,385 firm-years from fiscal year 2012-2014.Findings The results challenge the ASBJ’s claim that recycling improves the general information usefulness characteristics of net income. The empirical results show that OCI recycling improves net income’s relative value relevance characteristic of financial firms. However, recycling information by itself does not improve the incremental value relevance, and the predictive power of operating cash flow and net income. The authors also find that the inclusion of recycling decreases the persistence and increases the variability of net income.Research limitations/implications This paper has two research limitations. First, this study is constrained to analyze a limited OCI recycling data that is recently disclosed by listed Japanese firms. Second, the results of this study have limited external validity to capital markets with OCI reclassification standards that deviate from Japanese GAAP.Originality/value This study provides initial empirical evidence that examines information usefulness of OCI recycling in Japan. The findings of this study are relevant for accounting standards setters aiming to increase the information usefulness of earnings for capital market investors. [ABSTRACT FROM AUTHOR]

This article relies on a unique dataset of daily price indices for stocks and bonds to analyse the functioning of the Tokyo Stock Exchange ( TSE) in the period 1931-40. We find that this market deviated from weak-form efficiency, in a context of cross-market segmentation, short-run spillovers, and turmoil surrounding major events. In this context, zaibatsu insiders were able to make abnormal returns via informed trading, while other uninformed investors could rely on technical rules to make abnormal profits. Such findings call for a micro-level analysis of the interwar TSE corporate financing function. [ABSTRACT FROM AUTHOR]

This paper examines how firms' decision to start exporting is affected by the availability of information on export markets. Unlike existing studies that focus on information sharing among firms, we are interested in the information provided by firms' main bank. Specifically, using a unique data set containing information on both Japanese firms' export activities and the experience of their main bank (i.e., their top lender bank) in transacting with other exporting firms, we examine whether main banks act as a conduit of information on export markets. We find that information spillovers through main banks positively affect client firms' decision to start exporting (extensive margin), implying that information on foreign markets provided by banks substantially reduces the fixed entry cost of exporting. On the other hand, we do not find any evidence that information provided by banks has an effect on the export volume or on the growth rate of exports (intensive margin). Our results highlight that channels of information spillovers other than those examined in the literature so far may be of considerable importance. ( JEL F10, F14, G21) [ABSTRACT FROM AUTHOR]

Copyright of Socio-Economic History / Shakai-Keizai Shigaku is the property of Socio-Economic History Society and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

A literary criticism of the book "Saving the Sun" by Gillian Tett is presented. It states that the book documents the controversial American buyout of Long-Term Credit Bank of Japan (LTCB) during the Japanese financial crisis of the late 1990s. It highlights the interest of Tim Collins, chief executive officer (CEO) of private equity group Ripplewood Holdings LLC, on the portrayal of his character in the book. It mentions that the book was written after capital markets research.

Understanding the evolution of best execution and accompanying changes in market structure is essential to any discussion of the current trading environment. Meanwhile, the transformation of exchanges and the pressure from investors seeking best execution have put enormous demands on trading technology. Best execution regulations were introduced in Japan under the amended Securities and Exchange Act (the current Financial Instruments and Exchange Law) in April 2005; however, these new rules are much less detailed and stringent compared to the explicitly specified codes of conduct mandated in Europe and North America. Moreover, with precise definitions of `best execution' left to the discretion of securities firms - the operators themselves - there is scant likelihood of regulations being implemented and standardised on a market-wide basis. By the same token, Japan has yet to witness the dynamic structural market changes and segmentation seen in Europe and North America. This paper examines Japan's securities market trends based on the acute changes that have taken place in Europe and North America, reviewing the changing environment of the world's securities exchanges, business opportunities and strategic choices, then delving into the history and current state of Tokyo Stock Exchange's arrowhead initiative, before concluding with a recap of the events leading to the Japan Exchange Group (JPX) merger. Celent regards competition and diversity as the wellsprings of innovation, and technology as the catalyst for innovation. From this vantage point, Celent is eager to see incremental improvements, but also some disruptive innovation, in Japan's capital market. [ABSTRACT FROM AUTHOR]

This article identifies potential relationships between the methods by which large firms in the business sector are externally financed and creditors' determinations to resolve business failure through private negotiation or formal insolvency proceedings. Prior to the deregulation of Japan's capital markets in the 1980s, large firms relied heavily on bank debt as a source of external capital. Consequently, their capital structures and their creditor compositions were relatively homogenous. Japanese banks appeared to primarily resolve the failure of their borrowers through private reorganizations or liquidations rather than court proceedings, and evidence suggests that creditor homogeneity was a favorable condition for the negotiated resolution of business failure. Japan's corporate insolvency laws were used relatively infrequently and suffered from procedural and substantive defects that likely discouraged their use. The deregulation of Japan's capital markets in the 1980s enabled large firms to raise debt capital by issuing bonds, which over time resulted in the diversification of firm capital structures and creditor compositions. This had significant consequences for the ability of creditors to negotiate the resolution of their borrowers' business failure. Japan's long recession in the 1990s pushed many firms close to insolvency, yet it appears that changes in capital structure and creditor composition adversely affected the availability of negotiated resolution of business failure, and Japan's insolvency laws remained problematic. This article suggests that Japanese banks developed unusual and seemingly irrational lending strategies for distressed borrowers, given their inability to resolve business failure through private negotiations or formal insolvency proceedings. At the turn of the century, the Japanese legal community spearheaded significant reforms of Japan's insolvency laws, and a prolonged surge in filing rates indicates that creditors quickly seized upon legal reforms to force reorganization of distressed borrowers. While this article's findings are preliminary, it represents an agenda for further research on this topic. [ABSTRACT FROM AUTHOR]

This paper examines Japan's capital markets and offers an outlook for the future in light of the tumultuous changes seen in Europe and North America. Rooted in the view that the current trading environment has been enabled by the transformation afoot in the exchange industry, the paper considers best execution-related system innovation and changes in market structure as well as the current state of trading technology innovation before addressing these in terms of Japan's market. In its review of the merger that created JPX, the Japan Fair Trade Commission (JFTC) noted clearly that the merger cannot be expected to enhance efficiency and considered not only issues of market share but also broader questions of diversity and competition. In other words, the JFTC did not review the merger solely through the lens of the Antimonopoly Act 1947, but rather from the perspective of JPX's competiveness in global capital markets. As a result, JFTC approved the merger but imposed three measures as conditions: (1) involving outside experts in determining listing-related fees; (2) ensuring the existence of proprietary trading system (PTS) operators; (3) securing international licensed operators in derivatives-related businesses. The paper features information and comments from interviews conducted with multiple market participants. The results all point to the conclusion that Japan's market has yet to experience 'big bang' structural reforms on a par with the European and North American markets or to be subject to the accompanying across-the-board tsunami of technological innovation. At the same time, deregulation of PTS operators and margin trading have rippled through the market, leaving signs that this will significantly affect the new JPX and Japan's capital markets -- a conclusion supported by this study's results. [ABSTRACT FROM AUTHOR]

Copyright of Socio-Economic History / Shakai-Keizai Shigaku is the property of Socio-Economic History Society and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

Copyright of Research Papers of the Wroclaw University of Economics / Prace Naukowe Uniwersytetu Ekonomicznego we Wroclawiu is the property of Uniwersytet Ekonomiczny we Wroclawiu and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

Using monthly yield data on straight bonds, this article investigates seasonality in the Japanese corporate bond market. A statistical examination of spreads between the yield of each bond and a bond market index reveals that the yield spread consistently decreases from April to August, whereas it increases from September to December. Because accounting year-ends for most investors in Japan are concentrated in either March or December, this seasonality supports the hypotheses of tax-loss selling and window dressing. Moreover, the seasonality becomes more pronounced as the debt rating declines, consistent with the findings in previous studies investigating the US bond market. [ABSTRACT FROM AUTHOR]

This paper examines the evolution of keiretsu group affiliation among members of horizontal and vertical keiretsu in Japan over two time periods: 1992-1997, and 1997-2002. We found that ties were more stable in the later time period and therefore restricted our empirical analysis to the 1992-1997 period. We also found differences in the response of vertically and horizontally linked groups to economic downturn and capital market change-vertically linked groups weakened their ties while horizontally linked groups showed more stability. [ABSTRACT FROM AUTHOR]

This article examines the linkage of real interest rates for a group of East Asian countries. Monthly real interest rates data are considered for the USA, Japan, Korea, Singapore and Thailand from 1980 to 2005. It is found that the degree of capital market integration has increased after the Asian financial crisis in 1997. Before the crisis, both the US and Japanese capital markets dominated the region. After the crisis, the dominance of the Japanese market has completely disappeared while the US market remains the sole dominant player. Also it appears that Korea was insulated from the regional market influence before the crisis. [ABSTRACT FROM AUTHOR]

We examine the effects of keiretsu structure on capital market-timing. Keiretsu groups offer a hybrid structure between fully integrated conglomerates and stand-alone firms. We find that past market conditions affect the capital structure of keiretsu firms more than they affect the capital structure of unaffiliated firms. The decision to issue equity is more correlated with market conditions for keiretsu members than it is for unaffiliated firms. The stock returns of keiretsu firms following the issuance of equity decrease with the size of the issuance. These results suggest that keiretsu members time the issuance of equity more so than stand-alone firms. [ABSTRACT FROM AUTHOR]