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The Decline in Bank-Led Corporate Restructuring in Japan: 1981-2010

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  • Takeo Hoshi
  • Satoshi Koibuchi
  • Ulrike Schaede

Abstract

Using a unique dataset on all major corporate restructuring events in Japan between 1981 and 2010, we examine how bank-led rescue operations in Japan have changed over time. The incidence of restructuring by distressed firms has become less frequent after the 1990s. When firms undergo restructuring, they adopt real adjustments in terms of labor, assets and finance, but the intensity of these adjustments has also declined over time. In line with existing research, we interpret these findings as strong indicators of changing corporate governance in Japan, in particular in terms of the decline in corporate monitoring functions of main banks.

Suggested Citation

  • Takeo Hoshi & Satoshi Koibuchi & Ulrike Schaede, 2017. "The Decline in Bank-Led Corporate Restructuring in Japan: 1981-2010," NBER Working Papers 23715, National Bureau of Economic Research, Inc.
  • Handle: RePEc:nbr:nberwo:23715
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    Cited by:

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    2. Jiang, Jinglu & Liu, Bo & Yang, Jinqiang, 2019. "The impact of debt restructuring on firm investment: Evidence from China," Economic Modelling, Elsevier, vol. 81(C), pages 325-337.

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    More about this item

    JEL classification:

    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages
    • G34 - Financial Economics - - Corporate Finance and Governance - - - Mergers; Acquisitions; Restructuring; Corporate Governance

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