Various management risks are inherent in corporate management. The Managers can cope with actualizing management risks in advance. But, It is very difficult to cope with latent management risks for the managers. For example, Toyota Motor before 2008 had remarkably good achievements. But, That Company added up a management loss at 2009 settlement accounts by the influence of Lehman shock. I think that the worsening performance more than assumption happened in Toyota Motor. Accordingly, the latent management risk in financial affairs was inherent in Toyota Motor those days. In this paper, I detect the situation of the latent management risk in financial affairs by Fourier- transforming change of cash-flow in each major company. And analyzing relationship of the latent management risks in financial affairs and the worsening performances after Lehman shock, I verify the size of influence which the latent risk in financial affairs has on management.

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We focus on idiosyncratic risk and investigate whether the announcement of the basic policy on internal control systems improves the information quality and decreases the risk faced by investors. Contrary to previous studies, which focus on the return to evaluate the effect of disclosure, our contribution of this paper is to focus on idiosyncratic risk to evaluate the announcement of the basic policy on internal control systems. Our results show that the idiosyncratic risk decreases subsequent to the announcement. This is consistent with our hypothesis that such an announcement can improve the information quality on internal control systems development. Moreover, we show that the first or a repeated announcement further decreases idiosyncratic risk. Such a decrease is also consistent with our hypothesis, because in these cases it is likely that the announcement further improves the information quality.

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This paper uses event study analysis to statistically verify the extent to which the publication of revisions to research and development (R&D) expenditure related accounting standards has a short-term effect on stock prices leading to abnormal returns over the periods immediately before and after the event. The results show that the 2008 publication of partial revisions to the R&D accounting standards, and a related newspaper article reporting the possibility of partial capitalization of R&D expenditures, gave a significant boost to share prices of firms listed on the Tokyo Stock Exchange. Further, the results indicate that Japanese investors do not consider it appropriate to expense R&D costs as they occur, and instead prefer such costs to be considered as assets. If one of the goals of an efficient accounting system is to allow investors to make more informed decisions, the results obtained here have many implications for future accounting standards pertaining to R&D expenditures.

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In recent years, it is recognized that intangible assets are important. This paper deals with brands out of the intangible assets and tries to make clear process in which the brand affects companies' performance. As the brand effects, I choose seven marketing advantages and carried out a survey by sending questionnaires to listed Japanese companies. I did covariance structure analysis on the brand effects on financial performance of the companies of which names are disclosed in the survey. The analysis shows that there is a positive relation between the brand effects and the companies' performance. The brand affects companies' financial performance through the brand effects.

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In recent years, mezzanine finance deals of the listed company have appeared in Japan. The purpose of this paper is to consider the role of corporate mezzanine finance deals in the case of West Holdings Corporation. This paper is organized as follows. The first and second section explains background of mezzanine finance in the case of West Holdings Corporation. The third section analyzed the transaction scheme of mezzanine finance deals. The fourth section analyzed operating improvement and financial condition after mezzanine finance deals. The fifth and sixth section explains redemption of preference shares. Finally, the role of mezzanine finance and some future view are drawn. The case of West Holdings Corporation represents steady EBITDA growth. Since the redemption of preference shares was in progress smoothly, this example will be positioned success example.

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The purpose of this paper is to explore the effect of internal control system in Japanese companies, given that most previous research on internal control has focused on US contexts. This study conducted interviews with three Japanese companies to investigate where the effects of the internal control system were apparent, if it did indeed function effectively, and in the case of its having no effects, where the problem behind this ineffectiveness could be located. The results of such analysis of particular cases have very low universality compared with those of quantitative studies. However, this analysis of specific issues has allowed for the identification of problems that ensue upon the introduction of internal control system. Of the three companies, two of them had remarkable effects from the introduction of an internal control system in the area of improvement of effectiveness and efficiency of operations. The companies that had such effects showed distinctive features such as vulnerabilities in their existing operation manuals, the need for visualizing their operations, and considerable variety in their kinds of operations. On the other hand, the companies in which effects were not apparent were distinguished by the fact that they cannot secure effectiveness or efficiency of operations merely through the improvement of manuals as there is little routine-type work. None of the companies enjoyed any extensive benefits when it came to detecting and preventing fraud. The reasons given were that the system demanded no more than formal checks, and that managerial skill was more important than the manual in preventing fraud because the kind of operations involved almost no routine work.

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