This paper examines the effects of the main bank's equity-debt structure, (i.e., equity stakes and debt claims) on firm performance and financial policies in Japan over the period 1977-1987. Results show that firms with main bank equity stakes have lower performance than those without. However,...

We examine shareholder litigation and the price and non-price terms of bank loan contracts. After the lawsuit filing, defendant firms pay higher loan spreads, up-front charges, experience more financial covenants, and are more likely to have a collateral requirement. These findings are...