The Influence of Large Creditors on Creditor Coordination

This paper examines the influence of large creditors in determining the likelihood of debt defaults due to creditor coordination failure. We develop a model in which a large creditor and a group of small creditors independently decide, based on private signals of fundamentals, whether to foreclose on a loan. In the absence of common knowledge of fundamentals, the incidence of failure is uniquely determined. Comparative statics on the unique equilibrium provides simple characterization of the role of large creditors. Our results show that the smaller the large creditor is, the more vulnerable the debtor is to premature foreclosure. We also find that information of relatively high precision available to the large creditor reduces the probability of failure.

Japanese SimCSE Technical Report

We report the development of Japanese SimCSE, Japanese sentence embedding models fine-tuned with SimCSE. Since there is a lack of sentence embedding models for Japanese that can be used as a baseline in sentence embedding research, we conducted extensive experiments on Japanese sentence embeddings involving 24 pre-trained Japanese or multilingual language models, five supervised datasets, and four unsupervised datasets. In this report, we provide the detailed training setup for Japanese SimCSE and their evaluation results

How Large Creditors Affect Corporate Bond Prices through Creditor Coordination

We investigate the role of large creditors such as Japanese main banks in determining the prices of corporate bonds when creditors face coordination problems. We present a model in which a single large creditor and a group of small creditors independently decide whether to continue lending to a borrowing company without common knowledge of the company’s fundamentals. Our numerical calculations in the model show that when these fundamentals are good enough, corporate bond values fall as the information available to the large creditor deteriorates. However, when the fundamentals are bad enough, corporate bond values rise as the information available to the large creditor deteriorates. These results suggest that, for both the borrowing company and its bond holders, whether a better informed large creditor is beneficial or detrimental crucially depends on the strength of the company’s fundamentals

Preemptive Surrenders and Self-Fulfilling Life Insurance Crises

This paper examines the mechanisms behind the preemptive surrender of life insurance policies which resulted in the series of bankruptcies of life insurance companies during the "life insurance crisis" between 1997 and 2001 in Japan. In this paper, we construct coordina-tion games between policyholders in a situation where a life insurance company is likely to go bankrupt if many policyholders surrender their policies. We derive a unique equilibrium in a situation where policyholders are only able to obtain inaccurate information on the financial status of the life insurance company. We conduct a comparative statics study and results show that, with regard to the equilibri-um, there is an increased possibility that a life insurance company may be forced into bank-ruptcy when policyholders surrender their policies, even when the company’s financial status is good, in a situation where, one, policyholders become more risk averse, two, there is a decline in the level of accuracy of information on the financial status of the company, three, there is an increase in the refund that can be recovered with the surrender of a policy, and, four, there is a decrease in the liquidity of assets owned by the company. Furthermore, when there exist different types of policyholders in cases such as the co-existence of policyholders who are uncertainty-averse and policyholders who are highly risk-averse, there is a greater possibility that the life insurance company will go bankrupt as a result of the preemptive surrender of policies by policyholders. In addition, with regard to the injection of capital such as public funds into a life insurance company, the increase of capital injection up to a specific level will have the desirable effect of preventing a bankruptcy caused by the surrender of policies. However, an increase in the amount of capital injected beyond a certain level will produce the undesirable effect of postponing the disposition of excessive debts held by the life insurance company

Bi-directional Grammars for Machine Translation

In this paper we consider bi-directional grammars for natural languages. That is, a special class of grammars which can be used for both parsing and generation of sentences. We define the notion of "bi-directionality" and a class of general unification grammar and show that any instance of the grammar is bi-directional. We also discuss a subset of the grammar where more desirable property holds. We also consider an operational counterpart of the unification grammar, called pseudo-unification grammar, and show that similar results hold

Transformer-based Live Update Generation for Soccer Matches from Microblog Posts

It has been known to be difficult to generate adequate sports updates from a sequence of vast amounts of diverse live tweets, although the live sports viewing experience with tweets is gaining the popularity. In this paper, we focus on soccer matches and work on building a system to generate live updates for soccer matches from tweets so that users can instantly grasp a match's progress and enjoy the excitement of the match from raw tweets. Our proposed system is based on a large pre-trained language model and incorporates a mechanism to control the number of updates and a mechanism to reduce the redundancy of duplicate and similar updates.Comment: EMNLP 202

Influence of the Consideration of Future Consequences on Financial Behavior: The Case of Japanese Individual Investors

We analyze the impact of the “consideration of future consequences” (CFC) on the amount of financial assets and the liabilities of individual investors by applying a Tobit model to data from a web-based survey. We find that impatient individuals with high CFC have fewer deposits and financial asset balances. We also examine the influence of the CFC-immediate (CFC-I) and CFC-future (CFC-F) sub-indicators often used in psychology as well as CFC on financial asset balances and liabilities. CFC-I show concern with immediate consequences and also an index related to ego depletion. We find that the higher the CFC-I, the lower the amount of deposits and financial asset balances. However, CFC-F is a sub-indicator designating lack of concern with future consequences; thus, the higher the CFC-F, the larger the debt