{"title":"Beneath the Finance–Growth Nexus: The Case of Japan’s Post-World War II Commercial Banking","authors":"Kei-ichiro Inaba","doi":"10.1080/15339114.2016.1153977","DOIUrl":null,"url":null,"abstract":"ABSTRACT For most of the post-World War II period, Japan’s finance–growth nexus did not benefit greatly from the information-producing and monitoring activities of commercial banks. This contradicts the famous Main Bank thesis. Regulations on direct finance and competitive restrictions on banking effectively liberated the banks from having to develop their informational activities. These institutional factors also enabled the banks to extract regulatory and informational rents from client companies. Bank regulators were motivated to stick to the status quo without reforming such commercial banks. On an aggregate basis over the period 1965–96, corporate profitability negatively correlated with bank loan dependency, and liquidity constraints impacted on corporate finance.","PeriodicalId":53585,"journal":{"name":"Journal of Comparative Asian Development","volume":"138 1","pages":"19 - 63"},"PeriodicalIF":0.0000,"publicationDate":"2016-01-02","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":"1","resultStr":null,"platform":"Semanticscholar","paperid":null,"PeriodicalName":"Journal of Comparative Asian Development","FirstCategoryId":"1085","ListUrlMain":"https://doi.org/10.1080/15339114.2016.1153977","RegionNum":0,"RegionCategory":null,"ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":null,"EPubDate":"","PubModel":"","JCR":"Q3","JCRName":"Social Sciences","Score":null,"Total":0}
引用次数: 1
Abstract
ABSTRACT For most of the post-World War II period, Japan’s finance–growth nexus did not benefit greatly from the information-producing and monitoring activities of commercial banks. This contradicts the famous Main Bank thesis. Regulations on direct finance and competitive restrictions on banking effectively liberated the banks from having to develop their informational activities. These institutional factors also enabled the banks to extract regulatory and informational rents from client companies. Bank regulators were motivated to stick to the status quo without reforming such commercial banks. On an aggregate basis over the period 1965–96, corporate profitability negatively correlated with bank loan dependency, and liquidity constraints impacted on corporate finance.
期刊介绍:
The Journal of Comparative Asian Development (JCAD) aims to offer the most up-to-date research, analyses, and findings on the many aspects of social, economic, and political development in contemporary Asia conducted by scholars and experts from Asia and around the world.