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SSRN Electronic Journal
Article . 2012 . Peer-reviewed
Data sources: Crossref
https://dx.doi.org/10.7916/d8x...
Other literature type . 2012
Data sources: Datacite
EconStor
Research . 2012
Data sources: EconStor
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Nice to Be on the A-List

Authors: Kutsuna, Kenji; Hamao, Yasushi; Peek, Joe;

Nice to Be on the A-List

Abstract

This study addresses an important shortcoming of most of the existing literature on credit availability by including a set of unlisted firms (which are the firms most likely to be bank dependent) in the analysis, and by investigating differences between the treatment of listed and unlisted firms by their lenders. We find evidence consistent with evergreening behavior by banks toward listed firms, consistent with prior studies. However, the more striking result is that banks appear to treat the smaller, unlisted firms differently, being much less willing to engage in evergreening behavior for these borrowers. The difference in treatment of unlisted firms relative to listed firms does not appear to be related to systematic differences in size between the two groups of firms. Thus, it appears that the distinguishing characteristic that determines whether a bank might evergreen loans to a firm is whether or not the firm is listed. Furthermore, this effect appears to be stronger for those firms listed on the more prestigious Tokyo Stock Exchange compared to firms listed on other exchanges; that is, being on the list (being listed) matters, and being on the A-list matters even more. Moreover, among listed firms, for which data on ownership by banks are available, a higher concentration of ownership of the firm by either the main bank or the firm’s top three lenders increases the likelihood of the firm obtaining increased loans, suggesting that bank ownership of the firm stimulates evergreening behavior to a greater degree.

Country
United States
Keywords

G28, Banks and banking, Bank loans - Japan ; Small business - Japan, 330, ddc:330, financial crisis, E44, G21, SMEs, bank lending, E51

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    popularity
    This indicator reflects the "current" impact/attention (the "hype") of an article in the research community at large, based on the underlying citation network.
    Average
    influence
    This indicator reflects the overall/total impact of an article in the research community at large, based on the underlying citation network (diachronically).
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    impulse
    This indicator reflects the initial momentum of an article directly after its publication, based on the underlying citation network.
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selected citations
These citations are derived from selected sources.
This is an alternative to the "Influence" indicator, which also reflects the overall/total impact of an article in the research community at large, based on the underlying citation network (diachronically).
BIP!Citations provided by BIP!
popularity
This indicator reflects the "current" impact/attention (the "hype") of an article in the research community at large, based on the underlying citation network.
BIP!Popularity provided by BIP!
influence
This indicator reflects the overall/total impact of an article in the research community at large, based on the underlying citation network (diachronically).
BIP!Influence provided by BIP!
impulse
This indicator reflects the initial momentum of an article directly after its publication, based on the underlying citation network.
BIP!Impulse provided by BIP!
2
Average
Average
Average
Green