Under pressure: listing status and disinvestment in Japan

Joseph French, Ryosuke Fujitani, Yukihiro Yasuda and 行宏 安田

No G-1-21, Working Paper Series from Hitotsubashi University Center for Financial Research

Abstract: We provide the first large sample comparisons of disinvestment by listed and unlisted firms. This study focuses on Japanese firms from 2001-2017, as this was a period of economic stagnation and financial reforms encouraging companies to restructure. We show that stock market listing is positively related to disinvestment. Listed firms disinvest 1.9% more than similar unlisted firms. Disinvestment activities of listed companies are also more sensitive to investment opportunities. Additionally, firms that disinvest show improvements in ROA and increases in future investment. Finally, we find that foreign (financial institution) ownership is positively (negatively) related to disinvestment.

Keywords: disinvestment; listed status; short-termism (search for similar items in EconPapers)
JEL-codes: G31 G32 G34 (search for similar items in EconPapers)
Pages: 16 pages
Date: 2019-04-05
Note: This version: April 5, 2019
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https://hermes-ir.lib.hit-u.ac.jp/hermes/ir/re/30394/070hcfrWP_1_021.pdf

Related works:
Journal Article: Under pressure: Listing status and disinvestment in Japan (2020)
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Persistent link: https://EconPapers.repec.org/RePEc:hit:hcfrwp:g-1-21

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