Since 2010, the Bank of Japan (BOJ) has purchased stocks to boost domestic firms' valuations to increase GDP growth. The stock return elasticity with respect to BOJ purchases relative to the previous month's market capitalization is around 1.6 on the day of the purchase and decreases across...

The practice of adopting adults, even if one has biological children, makes Japanese family firms unusually competitive. Our nearly population-wide panel of postwar listed nonfinancial firms shows inherited family firms more important in postwar Japan than generally realized, and also performing...

Family firms depend on a succession of capable heirs to stay afloat. If talent and IQ are inherited, this problem is mitigated. If, however, progeny talent and IQ display mean reversion (or worse), family firms are eventually doomed. This is the essence of the critique of family firms in...