This paper examines the effects of structural changes in financial system on corporate governance in Japan. The primary purpose of the study is twofold: to identify important features of changes in Japanese financial system and their effects on corporate governance; to develop insights concerning...

This paper investigates the relationship between market liquidity and bank-dominated corporate governance structure of Japanese listed firms, represented as main bank relationships and cross shareholdings. We find that (i) main bank lending relationships increase market liquidity and reduce...