This paper investigates whether the health of a bank affects the client firm's capital structure and then leads to inefficiency in the client firm's decision-making. Using the Japanese IPO dataset from 1996 to 2005 when bank sectors suffered liquidity shortages and IPO booms occurred at the same...

In this paper, we investigate the impact of bank mergers on the lending relationship and on client-firm performance. We study bank mergers that have occurred in Japan since 2000 and find that banks reduce the loan amounts for firms with which they have a close relationship and that banks'...

Using the Japanese bank merger dataset for the 2000s, this paper investigates whether the reduction of the ownership ratio by the blockholder affects companies' operating performance and bank-firm relationships. In Japan, banks are prohibited from holding more than 5% of the business company's...

This paper examines how the post-IPO operating performance is determined. Unlike previous studies, we obtain the expected operating performance of IPO firms. Our findings are as follow. First, we find weak evidence of the agency problem that IPOs with high secondary shares record lower sales,...