This paper attempts to examine whether there exists long-term stability of corporate leverage among Japanese firms, following the study of Lemmon, Roberts and Zender (2008) who find that US firms exhibit the remarkable long-term stability of leverage. The obtained results show that the leverage...

We examine whether financial conglomeration enhances efficiency of capital allocation or conflicts of interest, focusing on pricing and allocation of IPO stocks in Japan. Regarding underwriting of IPO stocks, our results are consistent with the bank certification hypothesis. As for IPO...

In the Japanese initial public offering (IPO) market, initial first-day and one-year aftermarket returns are unusual, with a mean (median) of 0.417 (0.314) and −0.322 (−0.316), respectively. Our study relates this result to a globally popular book building pricing system that is blended with...