Under the Japanese "main bank" relationship, an individual bank holds equity in a firm and plays a leading role in a firm decision-making and financing. This may leave a firm dependent on its main bank for financing due to the information advantage it enjoys over other potential leaders. While...

A large literature on the appropriate sequencing of financial liberalization suggests that removing capital controls prematurely may contribute to currency instability. This paper investigates whether legal restrictions on international capital flows are associated with grated currency stability.

Renewed interest in the issue of appropriate exchange rate arrangements, particularly for developing countries, has been prompted by the general increase in global capital modility and the currency and payments crises of the 1990s. Three propositions are currently heard as prescriptions...

As memories of the East Asian crises of 1997-1998 recede, attention has shifted back to the traditional problems of macroeconomic management in a small open economy. A key question, in this regard, is the appropriate choice of exchange rate regime. While the East Asian crises cased some...

This paper examines the evidence in bank equity markets concerning bank regulatory policies in japan over the turbulent 1995-1998 period.

The coincidence of banking and currency crises associated with the Asian financial crisis has drawn renewed attention to causal and common factors linking the two phenomena. In this paper, we analyze the incidence and underlying causes of banking and currency crises in 90 industrial and...

This paper analyzes the role of money, credit, trade and competitiveness variables in signaling currency crises in a sample of East Asian and Latin American countries over the period 1972:01-1997:10. Bivariate tests suggest that money and credit, as well as trade and competitiveness variables,...

This paper compares the performance of a convoy banking system, similar to that which prevailed in Japan, to a fixed-premium deposit insurance regime. Under this system, failed banks are merged with healthy banks, rather than closed, so that the banking system itself provides the safety net for...

This paper examines the movements of exchange rates and capital inflows in an environment where an optimizing central bank pursuing the joint goals of inflation and output targeting engages in costly sterilization activities.

Previous empirical studies cast a doubt on a positive effect of overseas listings on stockholders' wealth. In this paper, we used a mail questionnaire to obtain information on overseas listing decisions of Japanese companies.