The Decline in Bank-Led Corporate Restructuring in Japan: 1981-2010

30 Pages Posted: 21 Aug 2017 Last revised: 26 Oct 2022

See all articles by Takeo Hoshi

Takeo Hoshi

University of California at San Diego; National Bureau of Economic Research (NBER)

Satoshi Koibuchi

Chuo University

Ulrike Schaede

University of California, San Diego - School of Global Policy and Strategy (GPS)

Date Written: August 2017

Abstract

Using a unique dataset on all major corporate restructuring events in Japan between 1981 and 2010, we examine how bank-led rescue operations in Japan have changed over time. The incidence of restructuring by distressed firms has become less frequent after the 1990s. When firms undergo restructuring, they adopt real adjustments in terms of labor, assets and finance, but the intensity of these adjustments has also declined over time. In line with existing research, we interpret these findings as strong indicators of changing corporate governance in Japan, in particular in terms of the decline in corporate monitoring functions of main banks.

Suggested Citation

Hoshi, Takeo and Koibuchi, Satoshi and Schaede, Ulrike, The Decline in Bank-Led Corporate Restructuring in Japan: 1981-2010 (August 2017). NBER Working Paper No. w23715, Available at SSRN: https://ssrn.com/abstract=3023113

Takeo Hoshi (Contact Author)

University of California at San Diego ( email )

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National Bureau of Economic Research (NBER)

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Satoshi Koibuchi

Chuo University ( email )

Ulrike Schaede

University of California, San Diego - School of Global Policy and Strategy (GPS) ( email )

9500 Gilman Drive
La Jolla, CA 92093-0519
United States

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