Bank relationships and underwriter competition: Evidence from Japan |
| |
Authors: | Ayako Yasuda |
| |
Affiliation: | The Wharton School of the University of Pennsylvania, Philadelphia, PA 19104, USA |
| |
Abstract: | 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. |
| |
Keywords: | G24 G28 L11 L13 L14 L50 L84 |
本文献已被 ScienceDirect 等数据库收录! |
|