The paper investigates the information sought by UK investors about Japanese companies, and the extent to which this involves the use of company financial statements. Such a study is important because it is only recently that Japanese financial markets have been relatively accessible to foreign investors, and that the volume of investment trade has grown rapidly. This paper describes the principal features of the accounting and capital market situation in Japan and reports the results of a series of interviews on these features. Participants interviewed had contradictory views on the application of CAPM to the Japanese market. If the market model is not appropriate for the Japanese market, this will have implications for future research in that market.
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