The Cost of Capital in Japan: Recent Evidence and Further Results / Albert Ando, Alan J. Auerbach.

Format:

Book

Author/Creator:

Ando, Albert.

Contributor:

National Bureau of Economic Research.

Auerbach, Alan J.

Series:

Working Paper Series (National Bureau of Economic Research) no. w3371.

NBER working paper series no. w3371

Language:

English

Physical Description:

1 online resource: illustrations (black and white);

Other Title:

The Cost of Capital in Japan

Place of Publication:

Cambridge, Mass. National Bureau of Economic Research 1990.

Summary:

We extend our recent work measuring the cost of capital in Japan and the United States by considering several questions that such results raised. Among our findings are:

(1) The small firm - large firm distinction appears to be more significant in Japan, not in the United States;

(2) Correcting Japanese accounting statements for cross-holding raises the estimated Japanese cost-of-capital by about 1 percentage point;

(3) Correcting Japanese accounting statements for unmeasured returns to land has a significantly more important effect: the most conservative correction we attempt raises the implied Japanese return to capital to parity with the United States during the mid-1980's.

Notes:

Print version record

May 1990.