Bank relationships and underwriter competition: Evidence from Japan

• 成果类型: Article
• 署名作者: Yasuda, Ayako
• 署名单位: University of Pennsylvania
• 刊物名称: JOURNAL OF FINANCIAL ECONOMICS
• ISSN/ISSBN: 0304-405X
• DOI: 10.1016/j.jfineco.2006.08.006
• 发表日期: 2007
• 页码: 369-404
• 关键词: bank relationships; bank equity holdings; universal banking; underwriter competition; comparing financial systems

摘要

I examine the effects of bank relationships on underwriter choice in the Japanese corporate bond market following the 1993 deregulation. Bank relationships have significant positive effects on a firm's underwriter choice. Relationship firms receive a small but significant fee discount and, consistent with the mitigating effect of competition on hold-up costs, multiple-relationship firms receive a significantly deeper discount than single-relationship firms. Bank shareholding alone negatively affects underwriter choice, whereas shareholding together with loans has significantly more positive effects than loans alone. Finally, existing relationships reduce a Japanese firm's switching probability by 32%, in contrast to only 6% for U.S. firms. (c) 2007 Elsevier B.V. All rights reserved.