IDEAS home Printed from https://ideas.repec.org/a/pal/jintbs/v16y1985i1p97-110.html
   My bibliography  Save this article

Financial Structure and Bankruptcy Risk in Japanese Companies

Author

Listed:
  • Sadahiko Suzuki

    (Keio Business School)

  • Richard W Wright

    (McGill University)

Abstract

Financial structure and the nature of financial risk in Japanese companies differ substantially from those of U.S. firms. As a result, the application of U.S. standards is likely to produce misleading conclusions for creditors, investors and competitors. This article examines the unique institutional relationships and the nature of debt and equity claims that are central to understanding financial risk in Japan. It reports the results of empirical testing of the types of measures that more accurately reflect bankruptcy risk in large Japanese firms. The findings indicate that measures of a company's social importance and the strength of its bank relationship may be more important at financially crucial moments than accounting information. The results are of practical value to foreign creditors and analysts, as well as to researchers.© 1985 JIBS. Journal of International Business Studies (1985) 16, 97–110

Suggested Citation

  • Sadahiko Suzuki & Richard W Wright, 1985. "Financial Structure and Bankruptcy Risk in Japanese Companies," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 16(1), pages 97-110, March.
  • Handle: RePEc:pal:jintbs:v:16:y:1985:i:1:p:97-110
    as

    Download full text from publisher

    File URL: http://www.palgrave-journals.com/jibs/journal/v16/n1/pdf/8490444a.pdf
    File Function: Link to full text PDF
    Download Restriction: Access to full text is restricted to subscribers.

    File URL: http://www.palgrave-journals.com/jibs/journal/v16/n1/full/8490444a.html
    File Function: Link to full text HTML
    Download Restriction: Access to full text is restricted to subscribers.

    As the access to this document is restricted, you may want to search for a different version of it.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:pal:jintbs:v:16:y:1985:i:1:p:97-110. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Sonal Shukla) or (Rebekah McClure). General contact details of provider: http://www.palgrave-journals.com/ .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.