The purpose of this paper is to test hypotheses regarding the mix of bank borrowing and bonds that occur under relationship banking, thereby constructing a detailed data set on the debt structure of large Japanese firms from the late 1980s to the 1990s. We show that debt choice is affected by main bank relationships, in the sense that successful firms with strong bank ties are much more likely to issue public bonds than resort to bank borrowing.
- Debt choice
- Financial deregulation
- Relationship banking
ASJC Scopus subject areas
- Business, Management and Accounting(all)
- Strategy and Management
- Management of Technology and Innovation