Title

Corporate Restructuring, Financial Deregulation, And Firm Value: Evidence From Japanese "Spin-Ins"

Keywords

Deregulation; Internal restructuring; Keiretsu

Abstract

This paper examines the impact on firm value from the restructuring process of the keiretsu system due to Japan's deregulation. We focus on unique internal restructuring transactions called "spin-ins" that are triggered by the Amendment of the Commercial Code in 2001. We show that significant positive abnormal returns exist around the announcement of the spin-ins. These announcement returns have a positive relation to keiretsu affiliation and bank financing. Also, we find that Japanese spin-ins result in a significant improvement in investment-Q sensitivity, especially for keiretsu firms. Our results support the argument that the keiretsu system has transformed itself into a more efficient organization through the recent deregulation in financial markets. © 2012 Elsevier B.V.

Publication Date

4-1-2013

Publication Title

Pacific Basin Finance Journal

Volume

22

Issue

1

Number of Pages

1-13

Document Type

Article

Personal Identifier

scopus

DOI Link

https://doi.org/10.1016/j.pacfin.2012.11.001

Socpus ID

84871667132 (Scopus)

Source API URL

https://api.elsevier.com/content/abstract/scopus_id/84871667132

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