Does market discipline work in Japan?

点击翻译按钮获取中文摘要

This study investigates how market discipline works in the Japanese financial systems. We obtain the following results. First, the developments of disclosure system enable outsiders to evaluate firms. Second, mutual life insurers are less efficient than stock life insurers. Third, postal saving bank privatization improves their efficiency. Fourth, shareholder proposals by institutional investors discipline corporate managers. Fifth, antitakeover amendments are evaluated as positive when Keiretsu companies adopt them.