We investigate the nature of monitoring by stake holders using data on Japanese manufacturing firms. Shareholders and … advertising, R&D and entertainment expenses. Monitoring of this type takes place even when the monitored firm is not in financial … distress. Although in Japan it is difficult to distinguish empirically between monitoring motivated by debt and monitoring …

We study the welfare implications of market power in a model where banks choose between credit rationing and monitoring … power induces banks to exert higher monitoring effort and reduces the frequency of credit rationing. Whenever the second …

between two second-best alternative devices: costly monitoring and credit rationing. We show that investment depends on both … the lending rate and the information structure. Since monitoring incentives increase with interest rate margins, the …

performance. Informed investors affect prices indirectly, and in opposite directions: their monitoring activity tends to raise …

(keiretsu) and main banks have monitoring functions. They find that MoF and BoJ retirees do move into banks that perform badly … private banks is positively related to specific main bank relationships. The hypothesis of monitoring by keiretsu is rejected …

information, either about productive activity or monitoring activity, two incentive problems must be simultaneously solved: first …

deterioration in bank monitoring quality at high levels of risk and a deterioration in bank monitoring quality upon lending …

monitoring, as loan officers of different gender do not seem to screen borrowers differently based on observable borrower …

. Finally, as an extension, we endogenize intermediation, in the form of monitoring, and show that it may be oversupplied in …