Search Results
Working Paper
The value of banking relationships during a financial crisis: evidence from failures of Japanese banks
In this paper, we provide evidence on the value of banking relationships by examining the stock market valuation impact of three large bank failures in Japan in 1997 and 1998 on their clients and the clients of surviving banks. Bank failures are theorized to have adverse consequences for other firms in general and for customers of the failed institutions in particular. Firms that are customers of the failed institution may be adversely affected because they may lose an ongoing source of funding and need to incur the expense of search and providing financial and other information about ...
Working Paper
Globalization of financial institutions: evidence from cross-border banking performance
We address the causes, consequences, and implications of the cross-border consolidation of financial institutions by reviewing several hundred studies, providing comparative international data, and estimating cross-border banking efficiency in France, Germany, Spain, the U.K., and the U.S. during the 1990s. We find that, on average, domestic banks have higher profit efficiency than foreign banks. However, banks from at least one country (the U.S.) appear to operate with relatively high efficiency both at home and abroad. If these results continue to hold, they do not preclude successful ...
Journal Article
Performance and access to government guarantees: the case of small business investment companies
This article analyzes the performance of small business investment companies (SBICs) that are chartered and regulated by the Small Business Administration (SBA). Our principal finding is that poor performance over the 1986-91 period is associated with high usage of funds from the SBA.
Journal Article
Japan's corporate groups
Journal Article
How are small firms financed? Evidence from small business investment companies
This article examines the investment decisions of small business investment companies (SBICs). The results indicate that potential costs of contracting among SBICs, small firms, and others may have significant effects on how small firms are funded. For instance, projects generating tangible assets and firms operating in industries with few growth opportunities are more likely to be financed with debt than nondebt.
Journal Article
Labor market fluctuations in Japan and the U.S.--how similar are they?
This article examines the sources of fluctuations in Japanese and U.S. labor markets. Despite the differences in the structures of the two labor markets, the authors find that unemployment and vacancies respond similarly to aggregate shocks. However, different shocks appear to be important in explaining fluctuations in the two labor markets.
Journal Article
Funding small businesses through the SBIC program
Journal Article
Assessing the condition of Japanese banks: how informative are accounting earnings?
This article examines the accounting and stock market performance of banks from 1991 to 1997. Overall, the results indicate that the accounting, disclosure, and regulatory practices of Japanese banks have drive a wedge between their accounting and stock market returns in recent years and, furthermore, that regulatory forbearance might have become a more important source of value to shareholders than the value of assets in place.
Journal Article
Banking relationships during financial distress: the evidence from Japan
This article examines some implications of the failure of three large Japanese banks in 1997 and 1998. The authors examine the response in the equity returns of surviving Japanese banks to the three failure announcements. In addition, they provide evidence on the clients of failed and surviving banks.