This paper examines the evidence in bank equity markets concerning bank regulatory policies in japan over the turbulent 1995-1998 period.

Previous empirical studies cast a doubt on a positive effect of overseas listings on stockholders' wealth. In this paper, we used a mail questionnaire to obtain information on overseas listing decisions of Japanese companies.

Under the Japanese "main bank" relationship, an individual bank holds equity in a firm and plays a leading role in a firm decision-making and financing. This may leave a firm dependent on its main bank for financing due to the information advantage it enjoys over other potential leaders. While...

It is a common view that private information in the foreign exchange market does not exist. We provide evidence against this view. The evidence comes from the introduction of trading in Tokyo over the lunch-hour. Lunch return variance doubles with the introduction of trading, which cannot be due...

The purpose of this paper is to examine Korean banks' responses to the Basle risk-weighted capital adequacy requirements implemented in 1993. The analysis indicates that while some cosmetic adjustementd might have been made by partial recognition of unrealized stock losses and expected loan...

As memories of the East Asian crises of 1997-1998 recede, attention has shifted back to the traditional problems of macroeconomic management in a small open economy. A key question, in this regard, is the appropriate choice of exchange rate regime. While the East Asian crises cased some...

This paper reviews how the changing financial environment in Korea has affected the conduct of monetary policy and examines the extent to which the Bank of Korea now uses the short-term interest rate rather than money aggregates as an operating target. Empirical results from estimation of...

This paper compares the performance of a convoy banking system, similar to that which prevailed in Japan, to a fixed-premium deposit insurance regime. Under this system, failed banks are merged with healthy banks, rather than closed, so that the banking system itself provides the safety net for...

This paper argues that fundamental weaknesses in Asian financial systems that had been masked by rapid growth were at the root of East Asia's 1997 currency and financial crisis. These weaknesses were caused by the lack of incentives for effective risk management created by implicit or explicit...

This paper examines the movements of exchange rates and capital inflows in an environment where an optimizing central bank pursuing the joint goals of inflation and output targeting engages in costly sterilization activities.