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
Copyright Status
Unknown
Socpus ID
84871667132 (Scopus)
Source API URL
https://api.elsevier.com/content/abstract/scopus_id/84871667132
STARS Citation
Choi, Yoon K. and Han, Seung Hun, "Corporate Restructuring, Financial Deregulation, And Firm Value: Evidence From Japanese "Spin-Ins"" (2013). Scopus Export 2010-2014. 6795.
https://stars.library.ucf.edu/scopus2010/6795