IDEAS home Printed from https://ideas.repec.org/
MyIDEAS: Login to save this paper or follow this series

The recent economic role of bank-firm relationships in Japan

  • Miarka, Tobias
Registered author(s):

    Our analysis highlights central aspects of the role of Japanese bank-firm relationships in times of deregulation. Comparing our results with earlier findings, it becomes evident that financial deregulation has triggered dramatic changes concerning the position of banks in the financial market and their relationships with large manufacturing firms. Since deregulation has opened up domestic as well as foreign capital markets, easy access to capital is not limited to bank-affiliated firms. While in earlier years firms with close banking ties may have been more profitable or used their advantages to enhance their growth or the compensation of employees, now whether such a relationship benefits a firm or acts as an obstacle depends largely upon the nature of that relationship. Hence, there are two general points made in this paper. First, in order to assess the economic role of bank affiliations, it is of eminent importance to differentiate between the various ways of establishing and maintaining bank-firm relationships. Second, the rapid development of the Japanese financial market over the last two decades has reduced the monopoly power of banks in a wide range of areas, which has caused dramatic changes concerning the benefits and costs of bank-firm relationships.

    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: http://econstor.eu/bitstream/10419/51180/1/319093107.pdf
    Download Restriction: no

    Paper provided by Social Science Research Center Berlin (WZB) in its series Discussion Papers, Research Unit: Market Dynamics with number FS IV 99-36.

    as
    in new window

    Length:
    Date of creation: 1999
    Date of revision:
    Handle: RePEc:zbw:wzbmdy:fsiv9936
    Contact details of provider: Postal: Reichpietschufer 50, 10785 Berlin, Germany
    Phone: ++49 - 30 - 25491 - 0
    Fax: ++49 - 30 - 25491 - 684
    Web page: http://www.wzb.eu/
    Email:


    More information through EDIRC

    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.:

    as in new window
    1. Steven M. Fazzari & R. Glenn Hubbard & BRUCE C. PETERSEN, 1988. "Financing Constraints and Corporate Investment," Brookings Papers on Economic Activity, Economic Studies Program, The Brookings Institution, vol. 19(1), pages 141-206.
    2. Shimizu, Yoshinori, 1997. "Speculative Bubbles, Depression and the Monetary Policy in Japan," Hitotsubashi Journal of commerce and management, Hitotsubashi University, vol. 32(1), pages 23-58, January.
    3. Takeo Hoshi & Anil Kashyap & David Scharfstein, 1990. "Bank Monitoring and Investment: Evidence from the Changing Structure of Japanese Corporate Banking Relationships," NBER Chapters, in: Asymmetric Information, Corporate Finance, and Investment, pages 105-126 National Bureau of Economic Research, Inc.
    4. Paul Sheard, 1994. "Bank Executives on Japanese Corporate Boards," Monetary and Economic Studies, Institute for Monetary and Economic Studies, Bank of Japan, vol. 12(2), pages 85-121, December.
    5. Corbett, Jenny, 1987. "International Perspectives on Financing: Evidence from Japan," Oxford Review of Economic Policy, Oxford University Press, vol. 3(4), pages 30-55, Winter.
    6. Degryse, H.A. & Ongena, S., 2000. "Bank Relationship and Firm Profitability," Discussion Paper 2000-14, Tilburg University, Center for Economic Research.
    7. Ramakrishnan, Ram T S & Thakor, Anjan V, 1984. "Information Reliability and a Theory of Financial Intermediation," Review of Economic Studies, Wiley Blackwell, vol. 51(3), pages 415-32, July.
    8. James, Christopher & Wier, Peggy, 1990. "Borrowing relationships, intermediation, and the cost of issuing public securities," Journal of Financial Economics, Elsevier, vol. 28(1-2), pages 149-171.
    9. R. Glenn Hubbard, 1990. "Asymmetric Information, Corporate Finance, and Investment," NBER Books, National Bureau of Economic Research, Inc, number glen90-1, January.
    10. Hoshi, Takeo & Kashyap, Anil & Scharfstein, David, 1990. "The role of banks in reducing the costs of financial distress in Japan," Journal of Financial Economics, Elsevier, vol. 27(1), pages 67-88, September.
    11. Hirata, Mitsuhiro, 1995. "Die japanische Torishimariyaku-kai : Eine rechtliche und betriebswirtschaftliche Analyse," Hitotsubashi Journal of commerce and management, Hitotsubashi University, vol. 30(1), pages 1-27, December.
    12. Hodder, James E. & Tschoegl, Adrian E., 1985. "Some Aspects of Japanese Corporate Finance," Journal of Financial and Quantitative Analysis, Cambridge University Press, vol. 20(02), pages 173-191, June.
    13. Yafeh Yishay, 1995. "Corporate Ownership, Profitability, and Bank-Firm Ties: Evidence from the American Occupation Reforms in Japan," Journal of the Japanese and International Economies, Elsevier, vol. 9(2), pages 154-173, June.
    14. Kang, Suk, 1985. "A note on the equivalence of specification tests in the two-factor multivariate variance components model," Journal of Econometrics, Elsevier, vol. 28(2), pages 193-203, May.
    15. G.B. Gorton & J.G. Haubrich, . "Bank Deregulation, Credit Markets and the Control of Capital," Rodney L. White Center for Financial Research Working Papers 08-86, Wharton School Rodney L. White Center for Financial Research.
    16. Lamont, Owen, 1995. "Corporate-Debt Overhang and Macroeconomic Expectations," American Economic Review, American Economic Association, vol. 85(5), pages 1106-17, December.
    17. Sheard, Paul, 1989. "The main bank system and corporate monitoring and control in Japan," Journal of Economic Behavior & Organization, Elsevier, vol. 11(3), pages 399-422, May.
    Full references (including those not matched with items on IDEAS)

    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:zbw:wzbmdy:fsiv9936. 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: (ZBW - German National Library of Economics)

    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.