This paper examines the association between institutional ownership and income smoothing through bank loan loss … different role in monitoring income smoothing during the recessionary period in Japan from the normal economic periods studied …

Using a sample from 38 economies, we examine the relation between bank regulators’ supervisory power and loan spreads … association is more pronounced when firms have lower credit quality, when the relationships between firms and banks are less … supervisory power of bank regulators affects loan contracting by mitigating lenders’ excessive risk taking …