An investigation and empirical study on the present structure of capital market and corporate finance

2002 Fiscal Year Final Research Report Summary

• Project/Area Number: 12430029
• Research Category: Grant-in-Aid for Scientific Research (B)
• Allocation Type: Single-year Grants
• Section: 一般
• Research Field: Business administration
• Research Institution: University of Marketing & Distribution Sciences
• Principal Investigator: HAMAMURA Akira Faculty of Commerce, Professor, 商学部, 教授 (10034414)
• Co-Investigator(Kenkyū-buntansha): TABUCHI Susumu Osaka University of Economics, Faculty of Information Management, Professor, 経営情報学部, 教授 (70079284) ; IKOMA Michihiro Shikoku University, Faculty of Management and Information Sciences, Professor, 経営情報学部, 教授 (10031840) ; GOTO Yukio Otemon Gakuin University, President, 学長 (50047445) ; FUKUDA Shimon Faculty of Commerce, Professor, 商学部, 教授 (80181270) ; SAKAKIBARA Shigeki Kobe University, Graduate School of Business Administration, Professor, 大学院・経営学研究科, 教授 (10030719)
• Project Period (FY): 2000 – 2002
• Keywords: corporate governance / venture business / initial public offering / stock futures / stock exchange

Research Abstract

We have investigated the present structure of Japanese capital market and corporate finance subsidized by KANENHI. Target of investigation ranged from the domestic major corporation to local small venture company and in addition we dared to go abroad to visit the subsidiaries of Japanese corporations. As the result we got a variety of information on corporate finance. All of the information we got from there was not able to fully reflect to our research report. But each investigator will gradually present some papers which contain the knowledge we got in this project.
The research report submitted was consisted of tree parts. First is about the issue of corporate governance. How was the corporate governance effective in the process that Japanese company changed finance method to offering new shares at the market price? What role the institutional investors take through the stock market and that role have any kind of tendency to corporate governance activity? Those kinds of issue are located on the center of this first part.
The second part of this investigation was about venture business. Especially our investigation focused the case and the general trend on Eastern Europe and Japanese local venture business which were not well known to the public.
The third was the issue of the stock market. Many researcher concerns about the underpricing of IPO and we examined this issue from behavioral finance. We also examined if there is the discrepancy between two stock prices when the parent companies merge their subsidiaries completely. Whether the pricing of stock future market was efficient or not is our concern and examined this efficiency with the time series models.