While the asymmetric treatment of positive and negative income creates clear tax incentives to shift income among a group of closely related corporations, attempts to document the impact of such behavior on economic outcomes are relatively sparse. We aim to provide evidence on tax-motivated...

We present a novel analysis of the relation between board's network structure and mandatory reorganization in the context of Japanese banks. Using a unique data set on individual board member characteristics, we produce the networks of corporate boards in Japanese banks; we look at the changes...

A case study of the Japanese bank recapitalization by Hoshi and Kashyap (2005) identified a bank that overstated the progress of required personnel downsizing by shifting employees to subsidiaries. This paper asks if the recapitalization program had a systematic flaw in design. We focus on...