This paper conjectures that when a bank's borrowing clients merge, the merger reduces the bank's risk. Because banks … hypothesizes that banks benefit from client mergers. Using data from Japan in 1990-2004, when Japan's banking sector suffered from … this hypothesis. First, banks of the merger firms on average gained positive abnormal returns upon announcements of mergers …

study bank mergers that have occurred in Japan since 2000 and find that banks reduce the loan amounts for firms with which … they have a close relationship and that banks' cumulative shareholding by the pre-merger banks is non-linearly related to … find that the cumulative equity stake held by pre-merger banks is non-linearly related to firms' subsequent performance …

Using the Japanese bank merger dataset for the 2000s, this paper investigates whether the reduction of the ownership … ratio by the blockholder affects companies' operating performance and bank-firm relationships. In Japan, banks are … subsequent operating performance has a non-linear relationship with the cumulative shareholding ratio in the pre-merger period …