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Bank Control and the Number of Bank Relations of Japanese Firms Author info | Abstract | Publisher info | Download info | Related research | Statistics Kazuo Ogawa ()
Elmer Sterken ()
Ichiro Tokutsu ()
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We explore the determinants of the number of long-term bank relations of listed Japanese firms using a unique data set covering the period 1982-1999. Japanese listed firms have about seven long-term bank loan relations on average, but show a large variation around the average. We analyze the determinants of the choice for the number of bank relations. We use data on loan and equity ownership to address the impact of the Japan-specific bank-firm relations and bank control on the number of loans decision. Having a relation with a top-equity holding bank reduces the number of bank relations, while debt-rich and cash-poor firms have more bank relations.
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Paper provided by CESifo Group Munich in its series CESifo Working Paper Series with number
CESifo Working Paper No. 1589.
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Date of creation: 2005Date of revision:
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Keywords: firm-bank relations ; single versus multiple borrowing ; bank control ; discrete choice models ; Find related papers by JEL classification: G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Mortgages G32 - Financial Economics - - Corporate Finance and Governance - - - Financing Policy; Capital and Ownership Structure
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