Working Papers from Economisch Institut voor het Midden en Kleinbedrijf-
Under the Japanese "main bank" relationship, an individual bank holds equity in a firm and plays a leading role in a firm decision-making and financing. This may leave a firm dependent on its main bank for financing due to the information advantage it enjoys over other potential leaders. While alternative sources of finance and financial liberalization may heve mitigated this dependency, the dependency may resurface during episodes of financial turbulence. We examine the sensitivity of returns on portfolio of equity of Japanese firms to the returns of their main banks using three factors arbitrage-pricing model.
More papers in Working Papers from Economisch Institut voor het Midden en Kleinbedrijf- Address: ECONOMISCH INSTITUT VOOR HET MIDDEN EN KLEINBEDRIJF, RESEARCH INSTITUTE FOR SMALL AND MEDIUM-SIZED BUSINESS IN THE NETHERLANDS, NEUHUYS. Series data maintained by Thomas Krichel ().