Competition Policy in Japan: An Economic and Legal Introduction with Illustrative Cases(2011.9)

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CPDP- 53-E(PDF:543KB)	"Competition Policy in Japan: An Economic and Legal Introduction with Illustrative Cases"(2011.9) Hiroyuki Odagiri(Professor, Faculty of Social Innovation, Seijo University) 　This paper investigates the extent of performance changes after mergers (including all forms of business combination) in Japan since 2000. The performance measure used is four-fold: profit rates, share prices (event study), innovation measures (R&D intensity and the number of patents), and product prices. To study the effects from diverse viewpoints, we adopt methodology and sample that would fit each performance measure best. The result produced little evidence to suggest that mergers improved the firms' performance. There are more cases of the performance worsening than improving after mergers, though hardly any results are statistically significant, because of the presence of large variance across cases. Keywords: merger, profit, event study, R&D, price, competition law JEL Classification Codes: G34, K21, L11, L25, L41, O31

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Contents，Author

"Competition Policy in Japan: An Economic and Legal Introduction with Illustrative Cases"(2011.9)
Hiroyuki Odagiri(Professor, Faculty of Social Innovation, Seijo University)
　This paper investigates the extent of performance changes after mergers (including all forms of business combination) in Japan since 2000. The performance measure used is four-fold: profit rates, share prices (event study), innovation measures (R&D intensity and the number of patents), and product prices. To study the effects from diverse viewpoints, we adopt methodology and sample that would fit each performance measure best. The result produced little evidence to suggest that mergers improved the firms' performance. There are more cases of the performance worsening than improving after mergers, though hardly any results are statistically significant, because of the presence of large variance across cases.
Keywords: merger, profit, event study, R&D, price, competition law
JEL Classification Codes: G34, K21, L11, L25, L41, O31