IDEAS home Printed from
MyIDEAS: Log in (now much improved!) to save this paper

Large Shareholders and Banks: Who Monitors and How

Listed author(s):
  • Yishay Yafeh

    (Hebrew University, University of Tokyo.)

  • Oved Yosha

    (Tel Aviv University.)

Registered author(s):

    Empirical studies of the role of large shareholders as monitors of firm management have focused on the relation between ownership structure and firm performance and have identified managerial turnover in periods of poor performance as a monitoring mechanism. Our central contribution is to identify empirically, using a sample of Japanese firms, another mechanism through which monitoring by firm stake holders occurs. We find that concentrated shareholding is associated with lower expenditure by management on several activities with scope for generating managerial private benefits. We also find that while shareholders are important for this form of monitoring, the evidence on such monitoring by creditors is less robust. Finally, we argue that monitoring of this type is more common in traditional producer-oriented industries (e.g. chemicals, metal products), and is less effective in hi-tech consumer good industries (e.g. electronics).

    If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.

    File URL:
    Download Restriction: no

    Paper provided by CIRJE, Faculty of Economics, University of Tokyo in its series CIRJE F-Series with number CIRJE-F-21.

    in new window

    Length: 32 pages
    Date of creation: Sep 1998
    Handle: RePEc:tky:fseres:98cf21
    Contact details of provider: Postal:
    Hongo 7-3-1, Bunkyo-ku, Tokyo 113-0033

    Phone: +81-3-5841-5644
    Fax: +81-3-5841-8294
    Web page:

    More information through EDIRC

    No references listed on IDEAS
    You can help add them by filling out this form.

    This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

    When requesting a correction, please mention this item's handle: RePEc:tky:fseres:98cf21. 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: (CIRJE administrative office)

    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.

    If references are entirely missing, you can add them using this form.

    If the full references list an item that is present in RePEc, but the system did not link to it, you can help with 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 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.

    This information is provided to you by IDEAS at the Research Division of the Federal Reserve Bank of St. Louis using RePEc data.