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Creditor-Focused Corporate Governance: Evidence from Mergers and Acquisitions in Japan

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  • Mehrotra, Vikas
  • van Schaik, Dimitri
  • Spronk, Jaap
  • Steenbeek, Onno

Abstract

Mergers in Japan have the dubious distinction of not creating wealth for shareholders of target firms, in sharp contrast to much of the rest of the world. Using a sample of 91 mergers from 1982 through 2003 we document several distinctive features of the merger market in Japan: mergers tend to be countercyclical and often orchestrated by a common main bank. Overall our results point to a market for corporate control that is distinctly less shareholder-focused than that in the U.S., and one where creditors play an important, perhaps dominant, role in corporate governance.

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Bibliographic Info

Article provided by Cambridge University Press in its journal Journal of Financial and Quantitative Analysis.

Volume (Year): 46 (2011)
Issue (Month): 04 (September)
Pages: 1051-1072

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Handle: RePEc:cup:jfinqa:v:46:y:2011:i:04:p:1051-1072_00

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Cited by:
  1. USHIJIMA Tatsuo & Ulrike SCHAEDE, 2013. "The Market for Corporate Subsidiaries in Japan: An empirical study of trades among listed firms," Discussion papers, Research Institute of Economy, Trade and Industry (RIETI) 13012, Research Institute of Economy, Trade and Industry (RIETI).

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