Cross-corporate ownership, information asymmetry and the usefulness of accounting performance measures in Japan
Research output: Journal Publications and Reviews (RGC: 21, 22, 62) › 21_Publication in refereed journal › peer-review
Author(s)
Detail(s)
| Original language | English |
|---|---|
| Pages (from-to) | 85-98 |
| Journal / Publication | International Journal of Accounting |
| Volume | 35 |
| Issue number | 1 |
| Online published | 27 Mar 2000 |
| Publication status | Published - Mar 2000 |
| Externally published | Yes |
Link(s)
Abstract
Using a large sample of Japanese firms, this paper examines the informational role of cross-corporate, interlocking ownership in Japan. We hypothesize that as the level of cross-corporate ownership increases, there will be less information asymmetry between the firm and market participants, and thus, stock prices of firms with high cross-corporate shareholdings incorporate information about future profitability earlier than do stock prices of firms with low cross-corporate shareholdings. Results of various tests strongly support the hypothesis, suggesting that cross-corporate shareholdings are an important institutional factor that alleviates the information asymmetry in the Japanese equity market. Copyright © 2000 University of Illinois.
Research Area(s)
- Cross-corporate ownership, Information asymmetry, Information sharing, Informational efficiency, Intertemporal return-earnings associations, Japan
Citation Format(s)
Cross-corporate ownership, information asymmetry and the usefulness of accounting performance measures in Japan. / Jiang, Li; Kim, Jeong-Bon.
In: International Journal of Accounting, Vol. 35, No. 1, 03.2000, p. 85-98.Research output: Journal Publications and Reviews (RGC: 21, 22, 62) › 21_Publication in refereed journal › peer-review
