This paper employs an event study to analyze the effect of the 1981 voluntary export restraint (VER) agreements on profits in the Japanese automobile industry. Stock price movements of seven Japanese automakers and 69 of their suppliers are examined. The results indicate that the profits of Japan's producers of passenger cars rose as a result of the VERs, while only some suppliers, large ones and those producing specialized parts or services, appear to have shared the benefits. VERs increased profits for some firms in the Japanese auto industry, but many suppliers did not share the windfall.