We examine how foreign and domestic portfolio investors, both classified into money managers, invest in Japanese firms over the sample period of 1985–1998. We propose the agency-familiarity hypothesis to explain investment behavior of these institutional investors focusing on the two...

Using data on IPOs that are issued in Japan during January 1975–March 1989, we examine the deliberate underpricing and overreaction hypotheses to explain high initial returns at offering dates. Specifically, we analyze the cross-sectional pattern of the short- and long-run performance of IPOs....

We examine how keiretsu-related institutional investors behave in the Japanese stock market relative to other investor categories for the period from 1985-1998. Based on the agency problem hypothesis for the general bias of institutional investors and the relational distance hypothesis for the...