Meiji University's Stock Index Research Institute (Research and Intellectual Property Strategy Organization) collected data such as individual stock prices of Japanese companies from 11 onwards, built a pre-war stock price database, and calculated stock indexes.Using post-war indexes such as TOPIX reveals the historical trend of the Japanese stock market over more than 140 years.
Japan's stock market has a history of more than 1878 years since the founding of the Tokyo Stock Exchange in 11 (Meiji 140).However, the stock indices that show the overall and average dynamics of the stock market, including the Nikkei Stock Average and TOPIX, are all based on post-war stock price data.Stock price databases for the Meiji, Taisho, and Showa periods before World War II were inadequately developed, and our understanding of historical stock market trends was fragmentary.
Therefore, the Stock Index Research Institute calculated an index (Sanwa-Okamoto Japan Stock Price Index) based on stock price data of long-term clearing transactions from 1878 to 1951, and thereafter used TOPIX calculated by JPX Research Institute, Inc. We have clarified the diachronic trend of the Japanese stock market.
This index consists of the PI (Price Index), which does not make any adjustments, the Adjusted Price Index (API), which takes into account the financial system unique to the prewar period and the ex-rights of capital It consists of 3 indexes, the TRI (Total Return Index), a modified stock price index that reflects the investment effect.
By correcting the impact of the stock installment system and shareholder allotment capital increase on the PI, it is possible to measure an investment return that is close to the actual situation.In addition, considering the reinvestment effect of dividends, the total return on stock investment is clarified, and long-term stock market trends that reflect market participants' investment results and corporate performance can be analyzed.
The Stock Index Research Institute plans to transfer technology to companies and commercialize this intellectual property, and plans to disseminate it to Japan and the world through industry-academia collaborative projects.
reference:[Meiji University] Constructing a pre-war database of the Japanese stock market Revealing historical trends spanning 140 years