CIRJE-J-28. Kobayashi, Takao and Hiroyuki Yamada, "Does the Public Offering of Parent and Subsidiary Companies Distort the Market?", July 2000.

This paper is a companion paper to "Publicly Listed Parent/Subsidiary Pairs: Benchmarking to TOPIX and Market Distortion," by the same authors. The purpose of this separate piece is to give a more intuitive and non-mathematical illustration of the structure of the model, its assumptions, and conclusions. We also discuss the situations in more detail regarding the public offerings of subsidiary companies in today's Japanese equity market.