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The recent economic role of bank-firm relationships in Japan

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  • Miarka, Tobias
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    Abstract

    Our analysis highlights central aspects of the role of Japanese bank-firm relationships in times of deregulation. Comparing our results with earlier findings, it becomes evident that financial deregulation has triggered dramatic changes concerning the position of banks in the financial market and their relationships with large manufacturing firms. Since deregulation has opened up domestic as well as foreign capital markets, easy access to capital is not limited to bank-affiliated firms. While in earlier years firms with close banking ties may have been more profitable or used their advantages to enhance their growth or the compensation of employees, now whether such a relationship benefits a firm or acts as an obstacle depends largely upon the nature of that relationship. Hence, there are two general points made in this paper. First, in order to assess the economic role of bank affiliations, it is of eminent importance to differentiate between the various ways of establishing and maintaining bank-firm relationships. Second, the rapid development of the Japanese financial market over the last two decades has reduced the monopoly power of banks in a wide range of areas, which has caused dramatic changes concerning the benefits and costs of bank-firm relationships. -- Im Mittelpunkt der vorliegenden Analyse steht die Rolle japanischer Bank-Firmen- Beziehungen im Zuge der Deregulierung des japanischen Finanzmarktes. Vergleicht man unsere Ergebnisse mit früheren Untersuchungen japanischer Bank-Firmen-Beziehungen, werden zwei Punkte unmittelbar deutlich. Zum einen löst die Deregulierung des japanischen Finanzmarktes außergewöhnlich starke Änderungen hinsichtlich der Position der Banken im nationalen wie auch internationalen Finanzmarkt aus. Zum anderen sind Art und Ausmaß der Beziehungen zwischen Banken und Firmen fundamentalen Änderungen ausgesetzt. Seit durch die Deregulierung der japanische wie auch internationale Finanzmarkt geöffnet wurde, ist der einfache Zugang zu Kapital in Japan nicht mehr beschränkt auf den Kreis von Firmen mit exzellenten Bankbeziehungen. Vor der Deregulierung waren Firmen mit engen Bankbeziehungen meist profitabler und konnten ihre Bankbeziehungen nutzen, um ihr Wachstum zu steigern. Eine enge Bank- Firmen-Beziehung galt als ein zentraler Wettbewerbsvorteil. Heute zeichnet sich ein differenzierteres Bild. Es ist mehr und mehr abhängig von der jeweiligen Art und dem Ausmaß der Bankbeziehungen, ob diese Beziehungen einen positiven Einfluß auf die Entwicklung der Firma haben, oder ob Bankbeziehungen die Firma in ihrer Entwicklung einschränken. Die Untersuchung unterstreicht dabei zwei grundsätzliche Erkenntnisse. Erstens ist es notwendig, bei der Analyse der ökonomischen Rolle von Bank- Firmen-Beziehungen zwischen den vielfältigen Arten möglicher Bankbeziehungen zu differenzieren. Diese Differenzierung wird in der vorliegenden Arbeit konsequent verfolgt. Zweitens ist festzustellen, daß die rasche Entwicklung des japanischen Finanzmarktes während der letzten zwei Jahrzehnte die Monopolstellung der Banken in vielen Bereichen vermindert hat. Mit Hilfe einer Vielzahl von Analysen wird gezeigt, daß diese Entwicklung fundamentale Änderungen bezüglich des Nutzens und der Kosten von Bank-Firmen-Beziehungen ausgelöst hat.

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    Bibliographic Info

    Paper provided by Social Science Research Center Berlin (WZB) in its series Discussion Papers, Research Unit: Market Dynamics with number FS IV 99-36.

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    Date of creation: 1999
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    Handle: RePEc:zbw:wzbmdy:fsiv9936

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    1. Hirata, Mitsuhiro, 1995. "Die japanische Torishimariyaku-kai : Eine rechtliche und betriebswirtschaftliche Analyse," Hitotsubashi Journal of commerce and management, Hitotsubashi University, vol. 30(1), pages 1-27, December.
    2. G.B. Gorton & J.G. Haubrich, . "Bank Deregulation, Credit Markets and the Control of Capital," Rodney L. White Center for Financial Research Working Papers 08-86, Wharton School Rodney L. White Center for Financial Research.
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    6. Lamont, Owen, 1995. "Corporate-Debt Overhang and Macroeconomic Expectations," American Economic Review, American Economic Association, vol. 85(5), pages 1106-17, December.
    7. R. Glenn Hubbard, 1990. "Asymmetric Information, Corporate Finance, and Investment," NBER Books, National Bureau of Economic Research, Inc, number glen90-1.
    8. Takeo Hoshi & Anil Kashyap & David Scharfstein, 1989. "Bank Monitoring and Investment: Evidence from the Changing Structure of Japanese Corporate Banking Relationships," NBER Working Papers 3079, National Bureau of Economic Research, Inc.
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    10. Hans Degryse & Steven Ongena, 2001. "Bank Relationships and Firm Profitability," Financial Management, Financial Management Association, vol. 30(1), Spring.
    11. Corbett, Jenny, 1987. "International Perspectives on Financing: Evidence from Japan," Oxford Review of Economic Policy, Oxford University Press, vol. 3(4), pages 30-55, Winter.
    12. Kang, Suk, 1985. "A note on the equivalence of specification tests in the two-factor multivariate variance components model," Journal of Econometrics, Elsevier, vol. 28(2), pages 193-203, May.
    13. James, Christopher & Wier, Peggy, 1990. "Borrowing relationships, intermediation, and the cost of issuing public securities," Journal of Financial Economics, Elsevier, vol. 28(1-2), pages 149-171.
    14. Sheard, Paul, 1989. "The main bank system and corporate monitoring and control in Japan," Journal of Economic Behavior & Organization, Elsevier, vol. 11(3), pages 399-422, May.
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    16. Shimizu, Yoshinori, 1997. "Speculative Bubbles, Depression and the Monetary Policy in Japan," Hitotsubashi Journal of commerce and management, Hitotsubashi University, vol. 32(1), pages 23-58, January.
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    Cited by:
    1. Tlili, Rim, 2012. "Comment justifier la multibancarité au sein des PME ?," Economics Thesis from University Paris Dauphine, Paris Dauphine University, number 123456789/10919 edited by Etner, François, November.
    2. Djedidi-Kooli, Salima, 2009. "L’accès au financement des PME en France : quel rôle joué par la structure du système bancaire ?," Economics Thesis from University Paris Dauphine, Paris Dauphine University, number 123456789/8354 edited by Etner, François, November.
    3. Alessandro Gambini & Alberto Zazzaro, 2010. "Long-Lasting Bank Relationships and Growth of Firms," CESifo Working Paper Series 3106, CESifo Group Munich.
    4. Mahlich, Jörg C. & Roediger-Schluga, Thomas, 2006. "The Determinants of Pharmaceutical R&D Expenditures: Evidence from Japan," MERIT Working Papers 015, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).
    5. Brick, Ivan E. & Palia, Darius, 2007. "Evidence of jointness in the terms of relationship lending," Journal of Financial Intermediation, Elsevier, vol. 16(3), pages 452-476, July.

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