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  4. June 2003
  5. Review of Hoshi and Kashyap's Corporate Financing and Governance in Japan

Journal of Economic Literature

ISSN 0022-0515 (Print) | ISSN 2328-8175 (Online)

Review of Hoshi and Kashyap's Corporate Financing and Governance in Japan

  • Juro Teranishi
Journal of Economic Literature
vol. 41, no. 2, June 2003
(pp. 566–574)
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Abstract

Examining the development of the Japanese financial system since the Meiji era, Hoshi and Kashyap derive a number of interesting propositions on the evolution of bank-centered financing, its contribution to rapid growth, and its future transformation. They argue that the piecemeal approach to deregulation is one of the main reasons for the current banking crisis, and conclude that Japan will shift to a capital market-based financial system like the one in the United States or in prewar Japan. Hoshi and Kashyap's work makes an important contribution as a coherent long-term overview of Japan's bank-centered financial system.

Citation

Teranishi, Juro. 2003. "Review of Hoshi and Kashyap's Corporate Financing and Governance in Japan ." Journal of Economic Literature, 41 (2): 566–574. DOI: 10.1257/002205103765762770

JEL Classification

  • G30 Corporate Finance and Governance: General
  • G32 Financing Policy; Financial Risk and Risk Management; Capital and Ownership Structure; Value of Firms; Goodwill
  • G34 Mergers; Acquisitions; Restructuring; Voting; Proxy Contests; Corporate Governance