Deregulation and governance: plight of Japanese banks in the 1990s
The governance structure of public corporations is determined by the agency relationship between shareholders and managers, and the agency theory predicts that deregulation of an industry leads to governance adaptation. Deregulation of the Japanese banking business in the 1980s offers an interesting case study in this framework, as Japanese banks fell into serious solvency problems in the post-deregulation 1990s. This paper investigates whether ineffective governance was responsible for the plight of Japanese banks. The sample is 384 corporations that were listed on the Tokyo Stock Exchange between 1983 and 1990, which includes 59 banks. One of the findings is that bank shareholders allowed more diffuse ownership structure after deregulation, which demonstrates that the agency theory did not hold for shareholders of Japanese banks.
Volume (Year): 36 (2004)
Issue (Month): 5 ()
|Contact details of provider:|| Web page: http://www.tandfonline.com/RAEC20 |
|Order Information:||Web: http://www.tandfonline.com/pricing/journal/RAEC20|
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Shleifer, Andrei & Vishny, Robert W., 1986.
"Large Shareholders and Corporate Control,"
3606237, Harvard University Department of Economics.
- Morck, Randall & Shleifer, Andrei & Vishny, Robert W., 1988. "Management ownership and market valuation : An empirical analysis," Journal of Financial Economics, Elsevier, vol. 20(1-2), pages 293-315, January.
- Demsetz, Harold & Lehn, Kenneth, 1985. "The Structure of Corporate Ownership: Causes and Consequences," Journal of Political Economy, University of Chicago Press, vol. 93(6), pages 1155-77, December.
- James R. Rhodes & Naoyuki Yoshino, 1999. "Window Guidance By The Bank Of Japan: Was Lending Controlled?," Contemporary Economic Policy, Western Economic Association International, vol. 17(2), pages 166-176, 04.
- Jensen, Michael C. & Meckling, William H., 1976. "Theory of the firm: Managerial behavior, agency costs and ownership structure," Journal of Financial Economics, Elsevier, vol. 3(4), pages 305-360, October.
- Kole, Stacey R. & Lehn, Kenneth M., 1999. "Deregulation and the adaptation of governance structure: the case of the U.S. airline industry," Journal of Financial Economics, Elsevier, vol. 52(1), pages 79-117, April.
- Yafeh, Yishay & Yosha, Oved, 1995. "Large Shareholders and Banks: Who Monitors and How?," CEPR Discussion Papers 1178, C.E.P.R. Discussion Papers.
- Yafeh, Y. & Yosha, O., 1995. "Large Shareholders and Banks: Who Monitors and How," Papers 04-95, Tel Aviv.
When requesting a correction, please mention this item's handle: RePEc:taf:applec:v:36:y:2004:i:5:p:479-484. 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: (Michael McNulty)
If references are entirely missing, you can add them using this form.