Proposal of industrial research and development performance indices

To express research and development performance, R&D efficiency and R&D cash flow are proposed as indices. These indices reflect the connection between investment and its results more clearly than conventional indices such as R&D expenditure-to-sales ratio. For this attribute, the proposed indices are expected to be particularly useful in demonstrating the R&D division's accountability to other divisions and work within the R&D division toward R&D efficiency improvement.     

IFRS Adoption and Accounting Conservatism of Japanese Firms with Governance System Transition

International Advances in Economic Research - This study examines whether there is a difference in the degree of accounting conservatism between firms that voluntarily adopt International Financial...     

The task and challenge for Japan in the 21st century: An introduction

Since the collapse of an asset-inflated economic bubble in Japan started in the second half of the 1980s, it has brought about an entirely different assessment of this country. For all admiration claimed for it, the Japanese economy proved to be subject to Newton's law of gravitation. Opinions were beginning to divide over Japanese technology, too, after it was once believed to be leading the world. In fact, Japan has a big task to solve in the years before the 21st century. How will the Japanese face up to upheavals in the world, or how will they respond to their domestic problems such as demographic and rigid structures?Few messages from Japan have so far been available with regard to these questions. The world is left in a puzzle over the questions. Our task in this issue is to make clear what the Japanese are thinking and preparing to do in the years before the 21st century, and “what it is that they have to produce an influence on the world.”Specifically, discussions center on moves toward a knowledge-based society, research and development projects, manufacturing technologies, business strategies, industrial ecology, and the possibilities of a trilemma. In this article, I make some observations as a background to those subjects.     

IFRS Adoption and Stock Prices of Japanese Firms in Governance System Transition

This study examines firms' decision to voluntarily adopt IFRS in a setting where there are changes to the governance system in a traditionally code law country, as well as how the market responds to such decisions. We find the probability of voluntary IFRS adoption to be higher among firms that have a high proportion of foreign shareholders, undertake quality audits, have low levels of leverage, feature a nominating committee, and are included in the new market index. In addition, the stock prices of IFRS adopters tend to increase around the announcement date of IFRS adoption, compared to those of non-adopters. Finally, market reactions are smaller for firms that feature a nominating committee, and are included in the new market index—perhaps because IFRS adoption by these firms is less surprising to market participants, and because IFRS adoption is not expected to add large incremental value to these firms.     

CROSS‐BORDER M&As AND FIRM VALUE: A COMPARISON OF CHINA‐ AND US‐JAPAN M&As

We examine the effect of M&As conducted by U.S. and Chinese bidders (US‐Japan and China‐Japan M&As) on the stock prices of Japanese targets. We find that both types of M&As tend to increase the stock prices of the Japanese targets and that market reactions are significantly greater for US‐Japan M&As than for China‐Japan M&As. Additionally, capital participation produces greater market reactions to China‐Japan M&As than other structures, while acquisition produces this effect in US‐Japan M&As. Our results are consistent with previous research indicating that market reactions increase for bidders operating in a developed country with high‐quality institutions and corporate governance. (JEL G32, G34)     

Citation network analysis of organic LEDs

The field of organic light-emitting diodes (OLEDs) is an emergent research domain because of both scientific interest in chemistry and condensed matter physics and industrial importance as flat panel displays. In this paper, we analyzed a citation network of OLED papers and used a topological clustering method to investigate the structure of research and to detect emerging research domains. We found that most papers belong to two main clusters: organics and polymers. These two clusters have distinctive differences in subcluster structures and journals where papers are published. Supposing this discrepancy to indicate research progress, organics are in the applied research stage, while polymers are in the basic research stage.     

The Economic Impact of Herd Behavior in the Japanese Loan Market

This paper investigates whether inefficient herd behavior of Japanese financial institutions in the domestic loan market affected the real economy during the period between 1975 and 1999. By using Japanese loan data, arranged by geographical area, we show that loans stemming from inefficient herd behavior of Japanese financial institutions tended to have destabilizing effects on the GDP and land prices in the following years, while ordinary loans of those financial institutions had a more positive impact. Our results indicate that the deterioration of the real economy in the 1990s may have been attributable partly to the inefficient herd behavior in the Japanese loan market during the period of the economic bubble in the late 1980s.     

The Choice Between Flexible Exchange Rates, Capital Control and the Currency Board in Asian Countries: A Perspective from the "Impossible Trinity"

We attempt to compare adjustment costs under exchange rate regimes in East Asian economies during their recovery processes. The criteria are the degree of overshooting in exchange rates, the changes in country risks, and the severity and duration of the recovery processes. Linear ranking is difficult. Managed rates with capital control worked for macroeconomic performance despite the welfare loss due to blocking capital flows. The currency board system worked well for stability, but recent experiences of Argentina and Hong Kong were deflationary. Under flexible rates, many economies that received IMF grants suffered a drastic initial downturn but later recovered vigorously. JEL Classification Numbers: F31, F32, F33.