Artigo Acesso aberto Revisado por pares

Japanese Banks’ monitoring activities and the performance of borrower firms: 1981–1996

2005; Springer Science+Business Media; Volume: 2; Issue: 4 Linguagem: Inglês

10.1007/s10368-005-0040-2

ISSN

1612-4812

Autores

Kyoji Fukao, Kiyohiko G. Nishimura, Qing-yuan Sui, Masayo Tomiyama,

Tópico(s)

Islamic Finance and Banking Studies

Resumo

We construct an index measure that quantitatively describes the monitoring activities of Japanese banks. Using micro data on Japanese banks and borrower firms, we examine the effects of bank monitoring on the profitability of borrower firms. We find significant positive effects in the periods 1986–1991 and 1992–1996, although there is no significant effect in the period 1981–1985. We also examine how banks’ monitoring affects borrowers. The results show that the positive effects of banks’ monitoring on borrowers’ profitability are mostly caused by screening effects, not performance-improving effects.

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