In this study, we investigate the relationship between liquidity changes and stock returns in the Japanese stock market …. The results confirm that stocks with increased liquidity have higher stock returns than those with decreased liquidity …. This phenomenon indicates that the market under-reacts to changes in liquidity. We also decompose liquidity and analyze how …

liquidity risk. We find that, during Japan''s deflationary period, firms with more liquid balance sheets were less exposed to … price. We document a steep drop in the liquidity of the Japanese stock market in the post-bubble period and a steep rise in … stock market liquidity risk, while slowly growing firms were highly exposed to liquidity shocks. Also, aggregate liquidity …

Sizable risk capital from outside may be necessary to accelerate Japan''s corporate restructuring to replace the stock …

This paper examines the effects of quantitative easing implemented by the Bank of Japan (BoJ) since early 2001, looking …