EconPapers    
Economics at your fingertips  
 

Measuring the extent and implications of corporate political connections in prewar Japan

Tetsuji Okazaki and Michiru Sawada

No 16-003E, CIGS Working Paper Series from The Canon Institute for Global Studies

Abstract: This paper explores the extent of political connections of firms, and examines their implications on firm values, using firm-level data from prewar Japan. We collect the data of directors, their positions in the House of Representatives, stock prices and financial performance, on publicly traded companies in late 1920s and early 1930s Japan. It is found that almost 20% of the publicly traded companies had political connections through politician directors. Especially, firms in the regulated industries such as the electric power and railroad, were more likely to have political connections. Overall, there is no evidence that connections with politics added firm values. On the other hand, with respect to those firms that newly obtained political connections, we found that the stock returns improved from the pre-election period to the post-election period.

Pages: 31
Date: 2016-03
New Economics Papers: this item is included in nep-cdm, nep-his and nep-pol
References: Add references at CitEc
Citations: Track citations by RSS feed

Downloads: (external link)
https://www.canon-igs.org/en/column/160411_okazaki.pdf (application/pdf)

Related works:
Journal Article: Measuring the extent and implications of corporate political connections in prewar Japan (2017) Downloads
Working Paper: Measuring the extent and implications of corporate political connections in prewar Japan (2016) Downloads
Working Paper: Measuring the extent and implications of corporate political connections in prewar Japan (2014) Downloads
Working Paper: Measuring the Extent and Implications of Corporate Political Connections in Prewar Japan (2014) Downloads
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:cnn:wpaper:16-003e

Access Statistics for this paper

More papers in CIGS Working Paper Series from The Canon Institute for Global Studies Contact information at EDIRC.
Bibliographic data for series maintained by The Canon Institute for Global Studies ().

 
Page updated 2020-09-14
Handle: RePEc:cnn:wpaper:16-003e