Japanese Finance : Corporate Finance and Capital Markets in Changing Japan

by Choi; Hiraki

• ISBN13: 9780762310685
• ISBN10: 0762310685
• Format: Hardcover
• Copyright: 2003-12-02
• Publisher: Elsevier Science & Technology

Summary

Japan has always been an "odd man out" from the standpoint of Western norm or Western finance. It is a country that is as developed as any in the West. However, it is also a country that possesses the significant institutional and cultural traits that separate it from the West. An important question in finance is to what extent the basic models of finance, developed with the Western "perfect market" view in mind, can be applied to Japan; or conversely, what critical adjustments must be made to make models amendable to the reality of Japanese finance. This book contains 21 substantive papers that address various aspects of Japanese finance. This is an attempt to bring them together under the same cover so that the commonality and peculiarity of Japanese finance can be more easily discerned across different applications as well as compared across countries. Hence, despite apparent differences in topics, the theme is international and comparative in nature throughout.

Table of Contents

List of Contributors	ix
PART I: AN OVERVIEW AND COMPARATIVE ANALYSIS
The Japanese Finance: Is It Unique?	3	(8)
Jongmoo Jay Choi
Takato Hiraki
An Analysis of the Relative Performance of Japanese and Foreign Money Management	11	(24)
Stephen J. Brown
William N. Goetzmann
Takato Hiraki
Noriyoshi Shiraishi
The Impacts of Japanese Price-Competitive IPO Auctions Versus the U.S. Underwriter-Priced IPOs	35	(24)
Richard H. Pettway
PART II: CORPORATE FINANCE AND CONTROL
The Japanese Market for Corporate Control and Managerial Incentives	59	(28)
Jun-Koo Kang
Takeshi Yamada
Internal Cash Flows and Investment Decisions: A Comparative Study of the U.S. and Japan	87	(20)
Raj Aggarwal
Sijing Zong
The Supply of Trade Credit in Japanese Firms	107	(28)
Richard L. Constand
IPO Mechanisms: A Comparison of Book-Building, Discriminatory Price Auctions and Uniform Price Auctions	135	(20)
Jaclyn Beierlein
Hideaki Kiyoshi Kato
PART III: EQUITY AND DERIVATIVE MARKETS
The Efficiency of the Japanese Equity Market	155	(18)
Jun Nagayasu
Index-Futures Arbitrage in Japan	173	(26)
Y. Peter Chung
Jun-Koo Kang
S. Ghon Rhee
Price and Volume Effects Associated with a Change in the Nikkei 225 Index List: New Evidence from the Big Change on April 2000	199	(28)
Hideki Hanaeda
Toshio Serita
Did Option Markets Anticipate the Decline in Japanese Stock Prices in 1990?	227	(6)
Naoya Takezawa
Nobuya Takezawa
An Analysis of Japanese Return Dynamics Conditional on United States Monday Holiday Closures	233	(20)
Takato Hiraki
Edwin D. Maberly
PART IV: BANKING AND BOND MARKETS
Disintermediation and Bond Market Development in Japan	253	(26)
Peter G. Szilagyi
Jonathan A. Batten
Bank Stock Returns, Interest Rate Changes, and the Regulatory Environment: New Insights from Japan	279	(24)
John Paul Broussard
Kenneth A. Kim
Piman Limpaphayom
Is Issuing Subordinated Debt by Japanese Banks Effective in the Japanese Market?	303	(22)
Ayami Kobayashi
Comparison of the Short-Term and the Long-Term Characteristics of the Japanese and the U.S. Spot Interest Rate	325	(22)
Kenji Wada
PART V: INTERNATIONAL CAPITAL MARKET LINKAGES AND TRANSACTIONS
Information, Trading Volume and International Stock Market Comovements	347	(32)
Louis Gagnon
G. Andrew Karolyi
The Time-Varying Behaviour of Credit Spreads on Yen Eurobonds	379	(26)
Jonathan A. Batten
Warren P. Hogan
Seppo Pynnonen
Determinants of the Initial Decisions by Japanese Firms to Undertake Foreign Direct Investment	405	(20)
Yutaka Horiba
Kazuo Yoshida
PART VI: CURRENCY PREDICTION AND EXPOSURE
Estimation and Prediction of the Japanese Yen/U.S. Dollar Rate Using an Adaptive Time-Varying Model	425	(18)
Ahmed S. Abutaleb
Yuzo Kumasaka
Michael G. Papaioannou
Does the Day-of-the-Week Effect in Foreign Currency Markets Disppear? Evidence from the Yen/Dollar Market	443	(18)
Nobuyoshi Yamori
Panos Mourdoukoutas
Recognition of Foreign Exchange Risk in the Japanese Stock Market	461
Jongmoo Jay Choi
Takato Hiraki
Nobuya Takezawa