The Stock Price Reaction to Changes in Accounting and Capital Regulation for Japanese Banks
The purpose of the paper is to empirically show how the introduction and/or the changes of capital regulation affect to bank stock prices, and how the introduction and/or the changes of accounting regulation affect to the bank stock prices. To do so, we used the agency model developed by Kojima and Okura (2003) that describes how an introduction of the capital ratio regulation affects a bank manager’s compensation contract, effort allocation, and a shareholder’s profits. There are three main results as follows. (1) The events which strengthen the capital regulation increase expected stock prices, (2) The events which relax the capital regulation decrease expected stock prices, (3) The events which relax the accounting regulation do not change expected stock prices except for the introduction of “Accounting for Income Taxes.
Capital regulation Accounting regulation Agency model
Hiroyasu Yurikusa Mahito Okura Koji Kojima
University of Hyogo Nagasaki University Kwansei Gakuin University
国际会议
昆明
英文
1-11
2005-07-05（万方平台首次上网日期，不代表论文的发表时间）