Large Shareholders and Banks: Who Monitors and How
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).
|Date of creation:||Sep 1998|
|Contact details of provider:|| Postal: Hongo 7-3-1, Bunkyo-ku, Tokyo 113-0033|
Web page: http://www.cirje.e.u-tokyo.ac.jp/index.html
More information through EDIRC
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.