Empirical Research on effect on firm value caused by reforms of regulations designed to protect the interests of stockholders

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We empirically investigate effects on firm value caused by reforms of some regulations designed to protect the interests of stockholders. In sum, our key findings are the following three points. First, at the time of the reform of related legal system, an adoption of a takeover defense device has a role to signal a message of near future deterioration in earnings. Second, issuance of MSCB(Moving Striking-price Convertible Bond), which is a new method of equity finance, facilitates debt restructuring. Third, we investigate factors which affect the success of corporate turnaround of a financially distressed firm under private workout and confirm that the success is influenced by some characteristics of its main bank, specifically, the level of risk exposure to the distressed firm and the ratio of non-performing loans to the total capital.