Katsushi Suzuki
Hitotsubashi University
FinanceBusinessUnderwritingEquity (finance)Financial system
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Publications 13
#1Margarethe F. Wiersema (UCI: University of California, Irvine)H-Index: 24
#2Yoichiro Nishimura (Kanagawa University)H-Index: 1
Last. Katsushi Suzuki (Hitotsubashi University)H-Index: 2
view all 3 authors...
Research Summary: Firm performance and corporate governance have been shown to influence CEO selection, but our understanding of the role of social capital is more limited. In this study, we seek to provide further insight into the role of social capital by examining the influence of both “bonding” and “bridging” forms of social capital on CEO appointments. We find that candidates who have relational social capital, in terms of overlap with the CEO in organizational tenure, board tenure, and CEO...
2 CitationsSource
#1Jonathan M. Karpoff (UW: University of Washington)H-Index: 34
#2Katsushi Suzuki (Hitotsubashi University)H-Index: 2
Shareholder perks are in-kind gifts or purchase discounts made available to shareholders and are common at many firms. Shareholder perks return value to investors in a way that disproportionally rewards small shareholders. Using data from Japanese firms, we show that firms initiating perk programs attract small individual shareholders and decrease the concentration of share ownership. Firms that initiate perk programs experience an increase in value, an increase in share liquidity, and a decreas...
1 CitationsSource
We examine the relationship between the bank’s soundness and cash holdings in Japan, which is a bank-centered market. We find that the deterioration of a bank’s soundness makes firms increase their cash holdings and the cash flow sensitivity of cash. The increase in cash mitigates underinvestment problems when their banks face serious bad-loan problems. Furthermore, the value of cash in firms with unsound banks is more valuable than in the firms with sound banks. These relations are not found in...
This study examines the impact of incumbent CEO-new CEO candidate social ties on CEO selection and post-succession performance, using all candidate data of 4,400 CEO successions in Japan, where outsider CEOs are rarely selected. We found that a CEO successor with social ties is more likely to be appointed and that firm performance under a successor with social ties is higher than under a successor without social ties. We found these tendencies more in younger successors with high informational a...
#1Marc BremerH-Index: 8
Last. Katsushi SuzukiH-Index: 2
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Open-market repurchases reduce the supply of a stock’s shares in the market. Japanese stock repurchase data allows us to successfully isolate the supply effect from information effects of the stock repurchase. We focus on stock price behavior during the actual repurchase period when no new information is released and find that the excess stock returns are significantly positive only during actual repurchase periods. Our evidence supports the presence of a supply effect indicating downward-slopin...
#1Hideaki Kiyoshi Kato (Nagoya University)H-Index: 11
#2Katsushi Suzuki (Hitotsubashi University)H-Index: 2
The divergence of opinion model originally proposed by Miller (1977) has recently received a great deal of attention. Focusing on the unique offering process of Japanese seasoned equity offerings (SEOs), we are able to directly test the Miller model. A comparable analysis cannot be performed on U.S. SEOs. We find our proxy for divergence of opinion is negatively related to stock returns on both the announcement day and the issue day. This implies that the demand curve for the issuing firm’s comm...
2 CitationsSource
This paper examines the effects of the intended use of proceeds on bank underwriters' certification roles in Japan following deregulation in 1999. We find that bank underwriters have a positive effect on announcement returns. However, when the issuer discloses that the intended use of proceeds is repayment, the bank underwriter has no effect on the announcement returns. Although banks' holding loans have a positive effect on announcement returns, banks' equity holdings are negatively associated ...
#1Katsushi Suzuki (Ridai: Tokyo University of Science)H-Index: 2
This paper examines the effects of characteristics of bank underwriters on issue costs in seasoned equity offerings in Japan following deregulation in 1999. I find that banks’ holding loans have a negative effect on price discounts and no effect on underwriting fees. However, banks’ equity holdings have no effect on discount rates and a positive effect on underwriting fees. Furthermore, issuers with unhealthy banks pay higher discount rates, are more likely to be weak in their ex-post operating ...
13 CitationsSource
#1Nobuyuki Teshima (Senshu University)H-Index: 1
#2Katsushi Suzuki (Hitotsubashi University)H-Index: 2
IPO underpricing or the indirect cost of going public is extremely high in China. We hypothesize that government control over the corporate economy underlies this puzzle: Bureaucratic managers in state-owned firms as well as regulatory authorities have incentives to underprice. Using a sample of China's new stock market, we find evidence supporting this hypothesis. Underpricing is higher for state-owned firms and for IPOs before the reform which made IPO prices less affected by the regulator. Th...