An econometric analysis of the economic effect caused by the increase of the number of corporate reorganization and merger & acquisitions carried out by the buyout funds.

• Project/Area Number: 16530211
• Research Category: Grant-in-Aid for Scientific Research (C)
• Allocation Type: Single-year Grants
• Section: 一般
• Research Field: Public finance/Monetary economics
• Research Institution: Yokohama City University
• Principal Investigator: MARUYAMA Hiroshi Yokohama City University, International Graduate School of Arts and Sciences, Professor, 国際総合科学研究科, 教授 (30181837)
• Project Period (FY): 2004 – 2005
• Project Status: Completed (Fiscal Year 2005)
• Budget Amount: ¥1,000,000 (Direct Cost: ¥1,000,000); Fiscal Year 2005: ¥500,000 (Direct Cost: ¥500,000); Fiscal Year 2004: ¥500,000 (Direct Cost: ¥500,000)
• Keywords: managerial finance / corporate finance / Corporate Reorganization Law / investment fund / debt recovery rate / バイアウトファンド / 企業再生 / 企業合併 / ディープポケット仮説 / 更生スポンサー / 管財人 / 債務弁済率 / 更生計画 / 不況業種

Research Abstract

This paper provides empirical evidence that recent buyout fund boom in Japan influenced debt recovery rates in corporate reorganization cases. A sample of 110 corporate reorganization cases is divided into two groups, those commenced before 1998 and after 1999,to capture potential economic influence brought by buyout fund boom. Mainly relying on the theoretical considerations provided by Shleifer-Vishny's model which explains the relationship between industry conditions and the type of bidders, I developed a hypothesis ; deep pocket hypothesis. To test this hypothesis empirically, I categorized each reorganizing firm as either a firm belonging to a prosperous industry or a depressed industry. While this categorization significantly affects the regression estimates of recovery rates for ‘before 1998 cases', it shows no effect for ‘after 1999 cases'. The results suggest that the increase of the number of buyout funds that become sponsors in corporate reorganization cases in depressed industries alleviates the negative impact for recovery rates caused by industry conditions.

Research Products

• [Journal Article] バイアウトファンド主導の会社更生が更正債権弁済率に与えた影響の計測 (2006)
  • Author(s): 丸山 宏
  • Journal Title: 独立行政法人経済産業研究所ディスカッションペーパー 06-J-039(Web上公開)
  • Description: 「研究成果報告書概要(和文)」より
• [Journal Article] バイアウトファンド主導の会社更生が更生債権弁済率に与えた影響の計測 (2006)
  • Author(s): 丸山 宏
  • Journal Title: 独立行政法人経済産業研究所ディスカッションペーパー (未定)(単独製本)
• [Book] 企業再生の計量分析 (2006)
  • Author(s): 丸山 宏
  • Publisher: 東洋経済新報社(校正中につき未確定)
  • Description: 「研究成果報告書概要(和文)」より