Wartime Controls, Political Connections, and the Pricing of Zaibatsu Rents in Japan, 1930-1943

Keiichi Morimoto, Akihiko Noda, Takenobu Yuki

This paper examines how wartime economic controls shaped stock-price formation in Japan from 1930 to 1943. We develop a four-portfolio asset-pricing model in which zaibatsu affilia…