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Bond underwriting fees and keiretsu affiliation in Japan

Listed author(s):
  • de Jong, A.
  • Roosenboom, P.G.J.
  • Schramade, W.L.J.
Registered author(s):

    We examine fees on bonds issued by Japanese corporations during the 1994-2002 period. We relate fees to firms’ membership of bank-led (financial) keiretsu. For the full sample of firms, we establish a positive relation between fees and risk factors. Over time, we find that fees have increased for those firms that are related to financial keiretsu, even after controlling for risk factors. But during the same period, fees have fallen for firms not belonging to keiretsu. It seems that, against the background of bond market deregulation and weaker banks, keiretsu membership has become a burden rather than an advantage.

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    File URL: https://repub.eur.nl/pub/6725/ERS%202005%20038%20F&A.pdf
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    Paper provided by Erasmus Research Institute of Management (ERIM), ERIM is the joint research institute of the Rotterdam School of Management, Erasmus University and the Erasmus School of Economics (ESE) at Erasmus University Rotterdam in its series ERIM Report Series Research in Management with number ERS-2005-038-F&A.

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    Date of creation: 28 Jun 2005
    Handle: RePEc:ems:eureri:6725
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