Is universal banking justified? Evidence from bank underwriting of corporate bonds in Japan

• 成果类型: Article
• 署名作者: Kang, Jun-Koo; Liu, Wei-Lin
• 署名单位: Michigan State University; Michigan State University's Broad College of Business
• 刊物名称: JOURNAL OF FINANCIAL ECONOMICS
• ISSN/ISSBN: 0304-405X
• DOI: 10.1016/j.jfineco.2006.02.004
• 发表日期: 2007
• 页码: 142-186
• 关键词: universal banking; certification; Conflicts of interest; Underwriting; Japanese main bank

摘要

We examine the extent to which universal banking in Japan creates conflicts of interest. We find that as banks enter the securities business, they discount the price of the corporate bonds they underwrite significantly in an effort to attract investors, thereby generating conflicts of interest that are harmful to issuers. Further, we find that close prior lending relationships between banks and their client issuers is the driving force behind such conflicts and that competition from investment houses limits but does not eliminate these conflicts. Our results contrast sharply with the evidence for the US, which largely shows a certification role for banks. (c) 2006 Elsevier B.V. All rights reserved.