Financial Behavior of the Japanese Firms: Before and After the US Lehman Shock
DOI:
https://doi.org/10.14738/abr.32.1011Abstract
This paper studies the financial behavior of the Japanese firms by focusing on, in particular, its difference before and after the US Lehman shock. Findings derived from our analyses are summarized as follows. First, (1) regarding the financial condition in Japan, after the US Lehman shock, the current ratio, the debt ratio, the capital adequacy ratio of the Japanese firms clearly improved. In addition, (2) the fixed assets ratio of the Japanese firms also clearly decreased after the Lehman shock. Further, (3) as to the state of investments, after the Lehman shock, the equity investments of the Japanese firms increased whilst the investments in bonds and real estates as well as the capital investments of the Japanese firms decreased.
Keywords: Financial behavior; Financial ratio; Japanese firms; Lehman shock
References
Ang, J. and Smedema, A. (2011). Financial flexibility: Do firms prepare for recession? Journal of Corporate Finance, 17, 774<787.
Chen, H.J. and Chen, S.J. (2012). Investment
du Jardin, P. (2015). Bankruptcy prediction using terminal failure processes, European Journal of Operational Research, 242, 286<303.
Gazzola, P. and Amelio, S. (2014). The impact of comprehensive income on the financial ratios in a period of crises, Procedia Economics and Finance, 12, 174<183.
Selahudin, N.F., Zakaria, N.B., Sanusi, Z.M. and Budsaratragoon, P. (2014). Monitoring financial risk ratios and earnings management: Evidence from Malaysia and Thailand, Procedia < Social and Behavioral Sciences, 145, 51< 60.
Tsuji. C. (2014a). Exploring the financial ratios: The case study of the famed chemical industry firms in the US, Case Studies in Business and Management, 1, 11<21.
Tsuji. C. (2014b). An empirical comparison of the corporate financing behavior: The case study of the major US and Japanese firms in the electrical
