The Securitiess Analysts Association of Japan (SAAJ) announced that the following two articles won the Securities Analysts Journal Prize for 2021:

  1. Earnings Propagation Effects through the Global Supply Chain Network
           - Shimon Tsuchiya

The author examines earnings propagation effects through the global supply chain by measuring the lead-lag structure of quarterly earnings. He finds that propagation effects stem not only from direct trading partners, but also from indirectly linked firms, such as customers of customers. He also discusses the effectiveness of using network centrality to estimate the impact of each firm on other firms in the supply chain. The results suggest that weighting by degree of network centrality can be effective for capturing propagation effects from indirectly linked firms. To read this article, click here.

  1. An Empirical Analysis of the Value Creation Mechanism of Private Equity Funds
    – Evidence from PE-Backed Companies in Japan –
    - Yasutake Iioka

The author analyses the post-buyout financial performance of companies acquired by PE funds in Japan between 2013 and 2015. The results reveal the following three points: (1) the existence of economic value of PE investment (e.g., value-up effects); (2) the possibility that management support through the network of the PE firm’s parent company contributes to the improvement of performance; and (3) the possibility that PE investments with greater agency cost elimination effects achieve relatively better performance. To read this article, click here.




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