Corporate Restructuring in Japan An Event-Study Analysis

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 impleme...

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Bibliographic Details
Main Author: Chan-Lau, Jorge
Format: eBook
Language:English
Published: Washington, D.C. International Monetary Fund 2001
Series:IMF Working Papers
Subjects:
Online Access:
Collection: International Monetary Fund - Collection details see MPG.ReNa
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300 |a 15 pages 
651 4 |a Japan 
653 |a Depository Institutions 
653 |a Inflation 
653 |a Commercial banks 
653 |a Banks 
653 |a Labour 
653 |a Corporate Finance and Governance: Government Policy and Regulation 
653 |a Banks and banking 
653 |a Financial institutions 
653 |a Deflation 
653 |a Ownership & organization of enterprises 
653 |a Micro Finance Institutions 
653 |a Corporate Finance and Governance: General 
653 |a Mortgages 
653 |a Economic sectors 
653 |a Corporate Finance 
653 |a Business enterprises 
653 |a Corporate sector 
653 |a Labor 
653 |a Labor Force and Employment, Size, and Structure 
653 |a Asset prices 
653 |a Price Level 
653 |a Labor force 
653 |a Banks and Banking 
653 |a Labor market 
653 |a Corporate Governance 
653 |a Prices 
653 |a Macroeconomics 
653 |a Banking 
653 |a Role & responsibilities of boards & directors 
653 |a Corporate governance 
653 |a Income economics 
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520 |a 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