Japanese Banks’ monitoring activities and the performance of borrower firms: 1981–1996
AbstractUsing micro data of Japanese banks and borrower firms, we construct an index measure that quantitatively describes the monitoring activities of Japanese banks. We examine the effects of bank monitoring on the profitability of borrower firms. We find significant positive effects in the periods 1986-1991 and 1992-1996, although there is no significant effect in the 1981-1985 period . We also examine how banks' monitoring affects borrowers. The results show that the positive effects of banks' monitoring on borrowers' profitability are mostly caused by screening effects, not performance-improving effects.
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Bibliographic InfoArticle provided by Springer in its journal International Economics and Economic Policy.
Volume (Year): 2 (2005)
Issue (Month): 4 (December)
Contact details of provider:
Web page: http://www.springerlink.com/link.asp?id=111059
Main banks; Bank monitoring; Quantitative measure; Screening effects; Performance-improving effects; G21; G28;
Other versions of this item:
- Kyoji Fukao & Kiyohiko G. Nishimura & Qing-Yuan Sui & Masayo Tomiyama, 2004. "Japanese Banks' Monitoring Activities and the Performance of Borrower Firms: 1981-1996," Hi-Stat Discussion Paper Series d04-42, Institute of Economic Research, Hitotsubashi University.
- G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages
- G28 - Financial Economics - - Financial Institutions and Services - - - Government Policy and Regulation
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