Cross-corporate ownership, information asymmetry and the usefulness of accounting performance measures in Japan

Li Jiang, Jeong Bon Kim

Research output: Journal article publicationJournal articleAcademic researchpeer-review

18 Citations (Scopus)


Using a large sample of Japanese firms, this paper examines the informational role of cross-corporate, interlocking ownership in Japan. We hypothesize that as the level of cross-corporate ownership increases, there will be less information asymmetry between the firm and market participants, and thus, stock prices of firms with high cross-corporate shareholdings incorporate information about future profitability earlier than do stock prices of firms with low cross-corporate shareholdings. Results of various tests strongly support the hypothesis, suggesting that cross-corporate shareholdings are an important institutional factor that alleviates the information asymmetry in the Japanese equity market.
Original languageEnglish
Pages (from-to)85-98
Number of pages14
JournalInternational Journal of Accounting
Issue number1
Publication statusPublished - 1 Dec 2000


  • Cross-corporate ownership
  • Information asymmetry
  • Information sharing
  • Informational efficiency
  • Intertemporal return-earnings associations
  • Japan

ASJC Scopus subject areas

  • Accounting
  • Finance

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