The experience of the 2007-09 financial crisis has prompted much consideration of the link between the structure of compensation in financial firms and excessive risk taking by their employees. A key concern has been that compensation design rewards managers for pursuing risky strategies but...

We examine how banks affect firms' cash holdings by focusing on the soundness of banks in Japan, a bank-centered market, and we find that the deterioration of a banks' soundness leads firms to save more cash from their cash flows. The deterioration of bank soundness decreases bank-dependent firm...

This paper investigates how firm-bank relationships affect corporate cash-holding behavior. Using bank loan and financial statement data from emerging firms in Japan, we find that firms with concentrated bank relationships hold lower levels of cash. Additionally, firms with such bank...

Firms hold less cash (i.e. internal-liquidity) when their local bank branching network is dense. The effect strengthens for small, opaque and financially constrained firms. Further, it weakens with distance and strengthens with urban vibrancy. Finally, firms located in dense local branch...

This paper reviews empirical evidence on the use of bank lines of credit as a source of corporate liquidity. Traditional explanation for lines of credit is that they provide insurance against liquidity shocks, in much the same as way hoarding cash does. However, recent empirical research...

This paper uses Taiwanese data to examine the impact of firm-level corporate governance mechanisms on firms' average cash holdings. Specifically, it examines how a firm's number of banking relationships and the percentages of managerial ownership and board ownership impact the firm's level of...

This paper examines the effect of ownership structure on bank risk-taking and performance in emerging economies using India as a case study. We use generalised method of moments (GMM) estimation technique to analyse an unbalanced panel dataset covering 217 bank-year observations from 2008 to...