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Is the information produced in the stock market useful for depositors?

  • Shimizu, Katsutoshi
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    The information produced by sophisticated investors in the stock market may be useful for uninformed depositors. Since much information is not produced for Shinkin banks (cooperatives) in Japan, relying on the information from the stock market may be an efficient decision for these depositors. This paper provides empirical evidence that Shinkin depositors seemed to withdraw funds after observing a fall in the stock prices of other banks.

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    File URL: http://www.sciencedirect.com/science/article/B7CPP-4TY4663-1/2/7e0d6083e42b168c45c787e22331c18b
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    Article provided by Elsevier in its journal Finance Research Letters.

    Volume (Year): 6 (2009)
    Issue (Month): 1 (March)
    Pages: 34-39

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    Handle: RePEc:eee:finlet:v:6:y:2009:i:1:p:34-39
    Contact details of provider: Web page: http://www.elsevier.com/locate/frl

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    7. Sushil Bikhchandani & David Hirshleifer & Ivo Welch, 1998. "Learning from the Behavior of Others: Conformity, Fads, and Informational Cascades," Journal of Economic Perspectives, American Economic Association, vol. 12(3), pages 151-170, Summer.
    8. Mark M. Spiegel & Nobuyoshi Yamori, 2004. "The Evolution Of Bank Resolution Policies In Japan: Evidence From Market Equity Values," Journal of Financial Research, Southern Finance Association;Southwestern Finance Association, vol. 27(1), pages 115-132.
    9. Cook, Douglas O & Spellman, Lewis J, 1994. "Repudiation Risk and Restitution Costs: Toward Understanding Premiums on Insured Deposits," Journal of Money, Credit and Banking, Blackwell Publishing, vol. 26(3), pages 439-59, August.
    10. Swary, Itzhak, 1986. "Stock Market Reaction to Regulatory Action in the Continental Illinois Crisis," The Journal of Business, University of Chicago Press, vol. 59(3), pages 451-73, July.
    11. Masami Imai, 2006. "Market Discipline and Deposit Insurance Reform in Japan," Wesleyan Economics Working Papers 2006-007, Wesleyan University, Department of Economics.
    12. Ikuko Fueda & Masaru Konishi, 2007. "Depositors’ Response to Deposit Insurance Reforms: Evidence from Japan, 1990–2005," Journal of Financial Services Research, Springer, vol. 31(2), pages 101-122, June.
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