-finance, firms affiliated to a MGI are linked by a joint responsibility for the loan providing MGI affiliates with peer monitoring …

affiliates with peer monitoring incentives. Hence, MGI willingness to post collateral signals firms credit-worthiness to banks …

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 …

and banks are subject to moral hazard and monitoring is essential. Multiple-bank lending is optimal whenever the benefit … of greater diversification in terms of higher monitoring dominates the costs of free-riding and duplication of efforts … less profitable, and poor financial integration, regulation and inefficient judicial systems increase monitoring costs …

-ante regime of policy intervention involving conditional monitoring can prevent bank crises. …

firms and banks are subject to moral hazard and monitoring is essential. Multiple-bank lending is optimal whenever the … benefit of greater diversification in terms of higher monitoring dominates the costs of free-riding and duplication of efforts … less profitable, and poor financial integration, regulation and inefficient judicial systems increase monitoring costs …