Japan's banking crisis: An event-study perspective

Hideaki Miyajima; Yishay Yafeh

doi:10.1016/j.jbankfin.2007.03.006

Japan's banking crisis: An event-study perspective

Hideaki Miyajima, Yishay Yafeh

School of Commerce

Research output: Contribution to journal › Article

39 Citations (Scopus)

Abstract

We calculate abnormal stock returns for Japanese non-financial companies around major events associated with the banking crisis (1995-2000), and find that not all companies were equally sensitive to the malaise of the banking sector: the most affected were small, leveraged, low-tech companies with low credit ratings and low market to book ratios. This is consistent with "credit crunch" theories (companies with limited access to financial markets are sensitive to changes in bank lending) and with claims that innovation is rarely financed by bank debt. We do not find much evidence on the alleged misallocation of loans to support ailing bank clients.

Original language	English
Pages (from-to)	2866-2885
Number of pages	20
Journal	Journal of Banking and Finance
Volume	31
Issue number	9
DOIs	https://doi.org/10.1016/j.jbankfin.2007.03.006
Publication status	Published - 2007 Sep 1

Keywords

Banking crisis
Event-study
Japan

ASJC Scopus subject areas

Finance
Economics and Econometrics

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10.1016/j.jbankfin.2007.03.006

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Miyajima, H., & Yafeh, Y. (2007). Japan's banking crisis: An event-study perspective. Journal of Banking and Finance, 31(9), 2866-2885. https://doi.org/10.1016/j.jbankfin.2007.03.006

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