Banks, Ownership Structure, and Firm Value in Japan
Posted: 11 Apr 2000
There are 3 versions of this paper
Banks, Ownership Structure, and Firm Value in Japan
Banks, Ownership Structure, and Firm Value in Japan
Banks, Ownership Structure, and Firm Value in Japan
Abstract
We study the relation between firms? banking relations, ownership structures, and q ratios in Japan. At low levels of equity ownership by main banks, firms? q ratios fall as bank equity ownership rises. At higher levels of bank equity ownership, this relationship is mitigated and, in some specifications, even reversed. We argue that this relation reflects both costs and benefits of equity holdings by banks. In Japan, unlike the US, firm value rises monotonically with increased managerial ownership. Equity ownership by corporate blockholders is also positively related to firm value in Japan.
JEL Classification: G21, G32
Suggested Citation: Suggested Citation
Randall K. Morck
University of Alberta - Department of Finance and Statistical Analysis ( email )
2-32C Business Building
Edmonton, Alberta T6G 2R6
Canada
780-492-5683 (Phone)
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European Corporate Governance Institute (ECGI) ( email )
c/o the Royal Academies of Belgium
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1000 Brussels
Belgium
Anil Shivdasani (Contact Author)
University of North Carolina Kenan-Flagler Business School ( email )
Kenan-Flagler Business School
Chapel Hill, NC 27599-3490
United States
919-962-3182 (Phone)
919-962-2068 (Fax)