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SHIGEO TAKAMI
Department Department of Business Administration, Faculty of Business Administration Position Professor |
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| Language | English |
| Publication Date | 2016/06 |
| Type | |
| Peer Review | Peer reviewed |
| Title | Factors inhibiting Japanese firms from zero leverage: financial constraints and bank relationships |
| Contribution Type | |
| Journal | Asia-Pacific Journal of Accounting and Economics |
| Publisher | Fransic and Taylor |
| Volume, Issue, Page | 23(2),pp.161-176 |
| Total page number | null |
| Details | The objective of our paper is to clarify the factors that inhibit Japanese firms from being unlevered, focusing on the interactions between financial constraints and bank relationships. Through analysis of variance, logistic regressions, and sensitivity analyses,we conclude that financial constraints and bank shareholdings, which inhibit firms from being unlevered, are more powerful than the presence of foreign investors that encourage unleverage. Based on our panel data on 822 Japanese public
firms, we find that among developed countries, Japan has the fewest unlevered firms, with less than 5%. Additionally, we observe reciprocal cross stock holdings between unlevered firms and their banks. |
| DOI | 10.1080/16081625.2015.1012089 |