The Securities Analysts Association of Japan (SAAJ) announced that the following two articles won the Securities Analysts Journal Prize for 2023:

  1. Carbon Premium in the Tokyo Stock Market
    - Keiichi Goshima, CMA / Atsuki Yagi

This paper presents an empirical analysis of the influence of corporate GHG emissions on the cross-section of Japanese stock returns. The authors utilized multiple data sources on GHG emissions to investigate this impact. Their findings indicate that there is a negative premium associated with the emissions intensity, which refers to emissions per sales, of the direct emissions. Importantly, this negative premium remains statistically and economically significant even after controlling for other common equity risk factors. Consequently, the authors’ results suggest that, unlike the situation in the United States, investors in Japan do not require compensation for their exposure to carbon emission risk. To read this article, click here 

  1. Earnings Management and TSE Reform
    - Ritsuko Okada

This study provides evidence that the Tokyo Stock Exchange (TSE) reform has incentivized managers to pursue earnings management. More specifically, firms aiming to list on the newly created top-tier Prime Market are required to meet an earnings benchmark, and thus more likely to engage in earnings management. The old TSE First Section firms do not engage in earnings management as an earnings benchmark is not mandatory for them to be in the Prime Market. This study demonstrates that the managerial behavior of firms with a similar earnings level can differ depending on incentives. To read this article, click here

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