This paper examines the effects of Japanese monetary policy on individual firm's stock returns. Our objective is to test whether the firm-specific characteristics associated with the theories of monetary transmission mechanism can account for the heterogeneous responses of individual stock...

This paper re-examines the empirical evidence on the potency of Japanese monetary policy in the 1990s by comparing the estimated impacts of various proxies of monetary policy shocks on the macro economy. My empirical results demonstrate that the surprise target changes as a proxy of monetary...