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Under pressure: Listing status and disinvestment in Japan

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Listed:
  • French, Joseph J.
  • Fujitani, Ryosuke
  • Yasuda, Yukihiro

Abstract

We provide the first large sample comparisons of disinvestment by listed and unlisted firms using data on Japanese firms from 2001–2017. Listed firms disinvest 2.0% more than unlisted firms and their disinvestment is also more sensitive to investment opportunities. Additionally, firms that disinvest show improvements in return on assets and increases in future investment. Finally, we find that disinvestment increases with foreign ownership and falls with ownership by financial institutions.

Suggested Citation

  • French, Joseph J. & Fujitani, Ryosuke & Yasuda, Yukihiro, 2020. "Under pressure: Listing status and disinvestment in Japan," Finance Research Letters, Elsevier, vol. 34(C).
    • Handle: RePEc:eee:finlet:v:34:y:2020:i:c:s1544612319303587
    DOI: 10.1016/j.frl.2019.08.012
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    2. HATTORI Masazumi & FUJITANI Ryosuke & NAKAJIMA Jouchi & YASUDA Yukihiro, 2023. "Real Effects of Corporate Cash Holdings: Evidence from Japan," Discussion papers 23084, Research Institute of Economy, Trade and Industry (RIETI).

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    More about this item

    Keywords

    Disinvestment; Listing status; Unlisted firms;
    All these keywords.

    JEL classification:

    • G31 - Financial Economics - - Corporate Finance and Governance - - - Capital Budgeting; Fixed Investment and Inventory Studies
    • G32 - Financial Economics - - Corporate Finance and Governance - - - Financing Policy; Financial Risk and Risk Management; Capital and Ownership Structure; Value of Firms; Goodwill
    • G34 - Financial Economics - - Corporate Finance and Governance - - - Mergers; Acquisitions; Restructuring; Corporate Governance

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