Does Bank Liquidation Affect Client Firm Performance? Evidence from a Main Bank Failure in Japan
نویسنده
چکیده
Several empirical studies have supported the hypothesis that bank relationships have economic value. By examining the effect of a Japanese bank failure on the profitability of client firms, this paper shows that the impact of a bank failure on clients depends on clients depends on the client’s characteristics and the method of bank liquidation, and that the value of bank relationships has been overstated in the previous studies.
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