PT  - JOURNAL ARTICLE
AU  - Huong Ngo Higgins
TI  - Alternative Investments in Japanese M&As
AID  - 10.3905/jai.2002.319044
DP  - 2002 Jun 30
TA  - The Journal of Alternative Investments
PG  - 61--68
VI  - 5
IP  - 1
4099  - https://pm-research.com/content/5/1/61.short
4100  - https://pm-research.com/content/5/1/61.full
AB  - Mergers and acquisitions (M&As) are increasing in Japan in response to economic pressure and new legislation, and this increased activity creates a new frontier of opportunities for investment professionals. This article discusses the current M&A environment in Japan, and presents evidence on the market performance of Japanese bidders in the past decade. The findings indicate that the M&A market was relatively flat before 1999. However, after major legislative changes in 1999 to boost M&A growth in Japan, abnormal returns could be earned by Japanese bidders for Japanese targets. On the contrary, Japanese bidders for non-Japanese targets incurred insignificant negative abnormal returns over the same period, perhaps reflecting the challenge faced by the bidders in coordinating cross-border transactions. The article provides insight into the Japanese M&A market and helps M&A professionals assess gains from trading strategies in Japan.