Do Firms Benefit from Multiple Banking Relationships?: Evidence from Small and Medium-Sized Firms in Japan

This paper examines empirically the effects of multiple banking relationships on the cost and availability of credit. The analysis is based on an unbalanced panel data set for Japanese small and medium-sized firms over the period 2000-2002. The Hausman-Taylor estimator is used to allow for possible correlation between unobservable heterogeneity among firms and multiple banking relationships. The results suggest that the cost of credit is positively correlated with the number of banking relationships when the endogeneity of the banking relationships is considered. Multiple banking relationships have a positive effect on the availability of credit for financially constrained firms.

Japanese Banks' Monitoring Activities and the Performance of Borrower Firms: 1981-1996

Using micro data of Japanese banks and borrower firms, we construct an index measure that quantitatively describes the monitoring activities of Japanese banks. We examine the effects of bank monitoring on the profitability of borrower firms. We find significant positive effects in the periods 1986-1991 and 1992-1996, although there is no significant effect in the 1981-1985 period . We also examine how banks' monitoring affects borrowers. The results show that the positive effects of banks' monitoring on borrowers' profitability are mostly caused by screening effects, not performance-improving effects.

"Banks' Monitoring and Profitability of Borrowing Firms"(in Japanese)

We constructed measures representing the magnitude of Japanese banks' monitoring activities and tested two competing hypotheses about nature of banks' monitoring, (1) the monitoring improved profitability of borrowing firms and (2) it simply "screened" out unprofitable firms, by using the data of all Japanese corporations listed in the Tokyo Stock Exchange between 1986 and 1997. The result was inconsistent with the profitability-improving hypothesis of banks' active involvement in borrowing firms, and strongly suggested the banks' passive role as a screening device.

Diagnosis and management of Silver–Russell syndrome: first international consensus statement

This Consensus Statement summarizes recommendations for clinical diagnosis, investigation and management of patients with Silver–Russell syndrome (SRS), an imprinting disorder that causes prenatal and postnatal growth retardation. Considerable overlap exists between the care of individuals born small for gestational age and those with SRS. However, many specific management issues exist and evidence from controlled trials remains limited. SRS is primarily a clinical diagnosis; however, molecular testing enables confirmation of the clinical diagnosis and defines the subtype. A 'normal' result from a molecular test does not exclude the diagnosis of SRS. The management of children with SRS requires an experienced, multidisciplinary approach. Specific issues include growth failure, severe feeding difficulties, gastrointestinal problems, hypoglycaemia, body asymmetry, scoliosis, motor and speech delay and psychosocial challenges. An early emphasis on adequate nutritional status is important, with awareness that rapid postnatal weight gain might lead to subsequent increased risk of metabolic disorders. The benefits of treating patients with SRS with growth hormone include improved body composition, motor development and appetite, reduced risk of hypoglycaemia and increased height. Clinicians should be aware of possible premature adrenarche, fairly early and rapid central puberty and insulin resistance. Treatment with gonadotropin-releasing hormone analogues can delay progression of central puberty and preserve adult height potential. Long-term follow up is essential to determine the natural history and optimal management in adulthood

Corporate governance and research and development: Evidence from Japan

This paper investigates the effects of the ownership structure on the R&D intensity. Using the Japanese machine-manufacturing firm data from 1987 till 1998, we first found that the effects of R&D on stock market valuation and TFP growth were significantly positive in the latter half of the 1990s. Next, analyzing the determinants of the R&D intensity in 1998, we found that the shareholding ratios of large shareholders and the leverage ratios were positively correlated with R&D intensity, while the proportion of bank loans to total debt was negatively correlated with it. These results are consistent with the hypotheses that stress the disciplinary roles of large shareholders and debt. It is also consistent with a bank's holdup hypothesis. Finally, comparing the results of 1998 with those of 1989, we found that the positive roles of keiretsu affiliation and cross-shareholdings disappeared during the last decade.R&D, Corporate governance, Ownership structure, Japan,

Banks\u27Monitoring and Profitability of Borrowing Firms

我々は、銀行の審査活動の充実度を表す指標を用いて、銀行の審査機能に関し以下の仮説を検証した。（1）銀行審査は、借手企業に対するモニタリングや投資案件の選択に関する助言を通じて企業のパフォーマンスを改善する機能である（パフォーマンス改善効果）。（2）銀行審査は、借手に関する情報収集を通じて優良な借手を集める機能である（選別効果）。実証分析から、1986年～97年の上場企業の事後的パフォーマンスとメインバンクの審査体制充実度の間には正の相関があることが発見された。次に、両者の正の相関が、選別効果と銀行のパフォーマンス改善効果のいずれによるのかを、Two-Stage Double Fixed Effects Modelを用いることにより識別を行った。分析結果は、選別効果を強く支持するものであり、審査機能のパフォーマンス改善効果は見出せなかった。本文フィルはリンク先を参照のこ

Japanese Banks’ monitoring activities and the performance of borrower firms: 1981–1996

Main banks, Bank monitoring, Quantitative measure, Screening effects, Performance-improving effects, G21, G28,