Empirical studies on the determinants and effects of shareholding by banks

2016 Fiscal Year Final Research Report

• Project/Area Number: 15H06619
• Research Category: Grant-in-Aid for Research Activity Start-up
• Allocation Type: Single-year Grants
• Research Field: Money/ Finance
• Research Institution: Chuo University
• Principal Investigator: Ono Arito 中央大学, 商学部, 教授 (40756342)
• Research Collaborator: UESUGI Iichiro 一橋大学, 経済研究所, 教授 ; SUZUKI Katsushi 一橋大学, 大学院国際企業戦略研究科, 准教授
• Project Period (FY): 2015-08-28 – 2017-03-31
• Keywords: 銀行 / 株式保有

Outline of Final Research Achievements

Using micro dataset of Japan’s listed firms, we empirically studied the causal effects of declining shareholding by banks on bank lending and firm performance. In doing so, we utilized the regulatory change relating to banks’ shareholding in Japan in 2001 as an instrument for exogenous reduction in a bank’s shareholding to find the followings. First, exogenous reduction in a bank’s shareholding decreased the bank’s share of the firm’s loans. Second, for those firms whose shareholding by banks decreased, their riskiness increased. These results suggest that shareholding by a bank is useful in increasing its competitiveness in corporate lending market and mitigating shareholder-creditor conflicts. We also constructed a novel database of unlisted firms’ shareholders, which is useful in studying banks’ shareholding for unlisted firms.

Free Research Field

金融・ファイナンス