IDEAS home Printed from
MyIDEAS: Log in (now much improved!) to save this article

Corporate restructuring in Japan

Listed author(s):

Corporate restructuring, by addressing the excess capacity and debt overhang problems currently plaguing Japan’s corporate sector, is a key element in revitalizing the country’s economy. Towards this end, Japanese firms have been adopting new business practices and the government has engineered an ambitious and comprehensive package of reforms during the past years. The implementation of the Commercial Rehabilitation Law (CRL) on April 1, 2000, signaled that most of the official infrastructure conducive towards real restructuring was already in place. This article analyzes whether the new official infrastructure has helped the corporate sector to address the problems of excess capacity and to improve the current corporate governance system. Using event-study analysis, it finds that the market credibility of restructuring announcements based on better disclosure, mergers, and to a lesser extent, labor forced reductions, increased after the CRL implementation. Announcements aimed at reducing excess capacity were viewed skeptically by the market, though. These results suggest that reducing excess capital in Japan still requires substantial work.

To our knowledge, this item is not available for download. To find whether it is available, there are three options:
1. Check below under "Related research" whether another version of this item is available online.
2. Check on the provider's web page whether it is in fact available.
3. Perform a search for a similarly titled item that would be available.

Article provided by Capco Institute in its journal Journal of Financial Transformation.

Volume (Year): 7 (2003)
Issue (Month): ()
Pages: 85-92

in new window

Handle: RePEc:ris:jofitr:1303
Contact details of provider: Postal:
77 Water Street, 10th Floor, New York NY 10005

Phone: +1 212 284 8600
Web page:

No references listed on IDEAS
You can help add them by filling out this form.

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

When requesting a correction, please mention this item's handle: RePEc:ris:jofitr:1303. See general information about how to correct material in RePEc.

For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Prof. Shahin Shojai)

If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

If references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

Please note that corrections may take a couple of weeks to filter through the various RePEc services.

This information is provided to you by IDEAS at the Research Division of the Federal Reserve Bank of St. Louis using RePEc data.