We examine the misallocation of credit in Japan associated with the perverse incentives
faced by banks to provide additional credit to the weakest firms. Firms are more likely to …

Central to so many accounts of post‐war Japan, the keiretsu corporate groups lacked
economic substance from the start. Conceived by Marxists committed to locating …

Although reformers often claim Japanese firms appoint inefficiently few outside directors, the
logic of market competition suggests otherwise. Given the competitive product, service, and …

Bank-based systems of corporate governance are certainly an alternative in many Asian
economies. In spite of the great efforts directed to strengthening corporate governance along …

T he 1990s were interesting times for East Asia in the literal sense by tive the note, of famous
the with term Chinese most and countries in saying. the more in The the ominous decade …

If our facts don't fit the theory, we need new theory. And why not? Ostensibly at least, we
write these articles to understand the world we live in. Our theory serves a purpose if it helps …

Previous literature suggests that banking relationships can enhance the value of client firms
in the presence of asymmetric information problems. Hence, severance of banking ties due …

The Japanese financial system, which gives banks a more prominent role than banks in
other countries, has been categorized as relationship-based. 2 In the heyday of the …

This paper studies whether bank credit fuels asset prices. Financial deregulation during the
1980s allowed keiretsus to obtain finance publicly and reduce their dependence on banks …

Empirical studies in corporate finance have long been focused on the role of banks in
reducing the costs of financial distress. The environment and events in Japan provide a …