 Corporate restructuring in JapanJournal of Financial Transformation, 2003, vol. 7, 85-92 Abstract: 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. Keywords: Corporate restructuring; Commercial Rehabilitation Law (search for similar items in EconPapers) There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it. Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:ris:jofitr:1303 Access Statistics for this article Journal of Financial Transformation is currently edited by Prof. Shahin Shojai More articles in Journal of Financial Transformation from Capco Institute 77 Water Street, 10th Floor, New York NY 10005. |
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