An analysis of the relative performance of Japanese and foreign money management

Stephen J. Brown, William N. Goetzmann, Takato Hiraki, Noriyoshi Shiraishi

Research output: Chapter in Book/Report/Conference proceedingChapter (Book)Researchpeer-review


The increased market share of foreign investment trusts in Japan may be attributed to the fact that Japanese managers have dramatically underperformed benchmarks. Recently, we showed that this underperformance can be attributed to a unique Japanese tax environment. Using data from 1998 though 2001, we find that Japanese and foreign managers are becoming very similar in style and performance. However, Japanese managers suffered in the immediate aftermath of a major April 2000 revision in the tax code. We attribute this result to the huge inflow of new money into this sector and the style shifts necessary to accommodate this flow.

Original languageEnglish
Title of host publicationThe Japanese Finance
Subtitle of host publicationCorporate Finance and Capital Markets in ...
EditorsJ. Jay Choi, Takato Hiraki
PublisherEmerald Group Publishing Limited
Number of pages23
ISBN (Electronic)9781849502467
ISBN (Print)9780762310685
Publication statusPublished - 1 Dec 2003
Externally publishedYes

Publication series

NameInternational Finance Review
ISSN (Print)1569-3767

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