We examine incidents in which Japanese businesses are implicated in corporate scandals. Such firms suffer statistically significant losses in their market values. Given the negligible legal and regulatory penalties for Japanese companies, we interpret the results as convincing evidence on the magnitude of reputational losses. We also compare our results to those found in US studies. The average negative abnormal stock price reaction is larger in Japan than in the USA. Moreover, they are negative and statistically significant even when it is not obvious that the firm violated an implicit or explicit contract with the damaged party.

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The entries in this set of volumes are the result of our work with Palgrave Macmillan in creating an encyclopedia for a dedicated field of studyan idea inspired by The New Palgrave Dictionary of Economics. We thought this would be a timely task for a field (strategic management) that was (and still is) emerging and has loosely defined concepts and boundaries, core definitions, intellectual foundations, founding fathers, applications, and new avenues for research. We probably underestimated the time and effort it would take not only to define the right headwords, but in commissioning articles, finding the most relevant Editors, and trying to stay on track time-wise. And we could have not done this without an outstanding team of associate editors

We investigate whether insider trading restrictions had their intended effects during the 1960s and 1970s. We examine insider trading and stock market behavior before dividend initiations and omissions announced between 1935 and 1974. Contrary to existing research and commentary, we show that restrictions had meaningful effects. During the 1960s and 1970s, insiders sold less frequently before dividend omissions, and the average profitability of insider trades declined. In addition, the positive (negative) stock price runup before dividend initiations (omissions) decreased after 1961. The results provide some vindication for the Securities and Exchange Commission's adjudicative approach toward insider trading regulation.