The burst of a financial bubble in 1990 triggered a long recession in Japan. Ensuing massive bad loan problems plagued Japanese banks, many of which faced bankruptcy. Japanese firms also suffered from the massive excess capacity that their banks' bad loans financed. Japanese firms no longer had...

In recent years, the cost to merchants of accepting credit cards has risen dramatically without a corresponding increase in the benefits. This trend has sparked a wide-ranging struggle between merchants and banks, as merchants have begun to seek methods for limiting payment costs. The conflict...

In this paper, we examine changes in financial instruments and institutions by contrasting the successes and failures of institutional shareholder activism during the 1990s with more recent developments in hedge fund activism and the use of financial innovation. We find that although...

Countries that have experienced banking crises have adopted one of two distinct approaches toward the resolution of nonperforming assets - a centralized or a decentralized solution. A centralized approach entails setting up a government agency - an asset management company - with the full...

Exchanges and other trading platforms are often vertically integrated to carry out trading, clearing and settlement as one operation. We show that such vertical silos can prevent efficiency gains from horizontal consolidation of trading and settlement platforms to be realized. Independent of the...

Insurance company risk is assessed after their acquisitions. An acquisition may increase risk if it is a strategic mismatch, or an acquisition may reduce risk through cash flow diversification. Over thirty-six month periods surrounding insurance company acquisitions, systematic risk changes are...

Has the antitrust arsenal run out of novel theories or weapons? Think again. Recent scholarship has come to challenge conventional wisdom with the latest target of antitrust imagination being institutional investors, including diversified index funds. New economic research suggests that common...

This paper presents an overview of the Japanese system to deal with the distress of banks, providing a classification of the regulation and remedies based on the level of systemic risk of the troubled entity. The paper differentiates between the types of actions available and analyses in detail...

Korean Abstract: 이 연구는 은행의 소유 ․ 지배구조가 위험성향에 미치는 영향을 분석한다. 실증분석에서 은행 위험성향은 BIS자기자본비율 또는 예대비율에 의해 측정되며, 주요 결과는 다음과 같다. 먼저, 우리나라 은행의...

We examine the impact on a firm when it is exogenously forced to switch its bank relationship from one branch to another branch of the same bank. We show the effect depends directly on the relative balance between the hard accounting information provided to the bank by the firm, as part of the...