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 | |
| Publication status | Published - 2007 Sep |
Fingerprint
Keywords
- Banking crisis
- Event-study
- Japan
ASJC Scopus subject areas
- Economics and Econometrics
- Finance
Cite this
Japan's banking crisis : An event-study perspective. / Miyajima, Hideaki; Yafeh, Yishay.
In: Journal of Banking and Finance, Vol. 31, No. 9, 09.2007, p. 2866-2885.Research output: Contribution to journal › Article
}
TY - JOUR
T1 - Japan's banking crisis
T2 - An event-study perspective
AU - Miyajima, Hideaki
AU - Yafeh, Yishay
PY - 2007/9
Y1 - 2007/9
N2 - 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.
AB - 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.
KW - Banking crisis
KW - Event-study
KW - Japan
UR - http://www.scopus.com/inward/record.url?scp=34547947993&partnerID=8YFLogxK
UR - http://www.scopus.com/inward/citedby.url?scp=34547947993&partnerID=8YFLogxK
U2 - 10.1016/j.jbankfin.2007.03.006
DO - 10.1016/j.jbankfin.2007.03.006
M3 - Article
VL - 31
SP - 2866
EP - 2885
JO - Journal of Banking and Finance
JF - Journal of Banking and Finance
SN - 0378-4266
IS - 9
ER -