Does Bank Monitoring Benefit or Hurt Shareholders? Mergers for Coinsurance during Japan’s Banking Crisis in the 1990s
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چکیده
This paper examines the monitoring role of Japanese banks during the 1990s’ banking crisis. The results show a negative association between bank ties and shareholder wealth for a sample of Japanese M&A acquirers in 1990-2004. Further results implicate that banks arranged the acquisitions to coinsure target debts. The overall evidence highlights that banks restructured their loans to improve their capital adequacy ratios at shareholders’ expense. This paper is the first to demonstrate the coinsurance activity of Japanese banks and the negative bank monitoring effect on shareholders during the crisis.
منابع مشابه
Banking Crisis and Mergers – The Case of Japan
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