NATIONAL BUREAU OF ECONOMIC RESEARCH
NATIONAL BUREAU OF ECONOMIC RESEARCH

The Cost of Capital in Japan: Recent Evidence and Further Results

Albert Ando, Alan J. Auerbach

NBER Working Paper No. 3371 (Also Reprint No. r1649)
Issued in May 1990
NBER Program(s):   ITI   ME   IFM

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.

download in pdf format
   (306 K)

email paper

This paper is available as PDF (306 K) or via email.

Machine-readable bibliographic record - MARC, RIS, BibTeX

Document Object Identifier (DOI): 10.3386/w3371

Published: Journal of the Japanese and International Economies, Vol. 4, No. 4, pp. 323-350, (1990). citation courtesy of

Users who downloaded this paper also downloaded these:
Ando, Hancock, and Sawchuk w5884 Cost of Capital for the United States, Japan, and Canada: An Attempt at Measurement Based on Individual Company Records and Aggregate National Acccoun
Ando and Auerbach w1762 The Corporate Cost of Capital in Japan and the U.S.: A Comparison
Ando and Auerbach w2286 The Cost of Capital in the U.S. and Japan: A Comparison
Meerschwam The Japanese Financial System and the Cost of Capital
 
Publications
Activities
Meetings
NBER Videos
Data
People
About

Support
National Bureau of Economic Research, 1050 Massachusetts Ave., Cambridge, MA 02138; 617-868-3900; email: info@nber.org

Contact Us