Main bank relationship and accounting conservatism: evidence from Japan
Hideaki Sakawa () and
Naoki Watanabel ()
Additional contact information
Naoki Watanabel: Nagoya City University
Asian Business & Management, 2020, vol. 19, issue 1, No 5, 62-85
Abstract In a market-oriented economy like the USA, the process of monitoring through lending mitigates lenders’ demand for accounting conservatism. Japanese corporate governance is characterized as a bank-dominated or relationship-oriented system. Under bank-dominated systems, main banks are expected to be effective monitors. In our model, main banks play the role of reducing the lenders’ demand for accounting conservatism by reducing information asymmetry. We find that main banks can reduce the demand for accounting conservatism. Our findings help understand accounting conservatism vis-à-vis agency problems. We provide empirical evidence to contribute to literature on banking, specifically to fields such as relationship banking.
Keywords: Accounting conservatism; Agency problem; Corporate governance; Main bank (search for similar items in EconPapers)
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (3) Track citations by RSS feed
Downloads: (external link)
http://link.springer.com/10.1057/s41291-019-00071-5 Abstract (text/html)
Access to the full text of the articles in this series is restricted.
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:pal:abaman:v:19:y:2020:i:1:d:10.1057_s41291-019-00071-5
Ordering information: This journal article can be ordered from
Access Statistics for this article
Asian Business & Management is currently edited by Fabian Jintae Froese
More articles in Asian Business & Management from Palgrave Macmillan
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().