Herd behavior in the Japanese loan market: Evidence from bank panel data

Uchida, Hirofumi; Nakagawa, Ryuichi

doi:10.1016/j.jfi.2007.03.007

Cited by 73 publications

(52 citation statements)

References 44 publications

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“…The results indicate that syndication in the later rounds of financing, rather than in the first round of financing, has a more negative impact on the IPO value; thus suggesting that as Lerner emphasized, the effects of syndication differ between the first and later rounds of financing. Several studies have found imitative and herd behavior for Japanese firms and banks (e.g., Lieberman and Asaba, 2006;Uchida and Nakagawa, 2007). In the later rounds of financing for pre-IPO firms, VC firms have more incentive to participate in investments to better their reputations.…”

Section: As Shown Inmentioning

confidence: 99%

Initial public offering and financing of biotechnology start-ups: Evidence from Japan

Honjo

Nagaoka

2018

Research Policy

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Abstract:This paper explores the initial public offering (IPO) and financing of biotechnology start-ups in Japan. Using a unique data set, we find that biotechnology start-ups initially backed by venture capital (VC) firms and those originating from universities are more likely to go public within a shorter period. Moreover, we examine whether two investment methods used by VC firms-staged financing and syndication-affect the market value of equity at the IPO. The results reveal that these methods do not create a higher value of biotechnology start-ups at the IPO. Furthermore, we provide evidence that the timing of IPOs does not depend on market conditions in the biotechnology industry, whereas the market value of equity tends to depend on market conditions. JEL Classifications: G32; M13; L65

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Section: As Shown Inmentioning

confidence: 99%

Initial public offering and financing of biotechnology start-ups: Evidence from Japan

Honjo

Nagaoka

2018

Research Policy

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“…Buch and Lipponer (2006) show that foreign direct investments of German banks tend to concentrate in OECD countries. Uchida and Nakagawa (2007), Nakagawa (2008), and Nakagawa and Uchida (2010) provide the strong evidence of herding by Japanese banks in the period of the asset price bubble in the late 1980s. 2 In spite of many studies examining the existence of herding by banks, few studies have examined how bank herding affects the real economy.…”

Section: Introductionmentioning

confidence: 94%

The Economic Impact of Herd Behavior in the Japanese Loan Market

Nakagawa

Oiwa

Takeda

2012

Pacific-Basin Finance Journal

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This paper investigates whether inefficient herd behavior of Japanese financial institutions in the domestic loan market affected the real economy during the period between 1975 and 1999. By using Japanese loan data, arranged by geographical area, we show that the loans that stemmed from inefficient herd behavior of Japanese financial institutions tended to have a negative impact on the GDP and land prices in the following years, while aggregated loans of those financial institutions had a positive impact. Our results indicate that the deterioration of the real economy in the 1990s may have been attributable partly to the inefficient herd behavior in the Japanese loan market during the period of the economic bubble in the late 1980s. JEL: G21, E44

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“…Commercial banks probably are not using the same standards or preferences to evaluate the various loans for various industries. According to the study result of the Japanese banks, Uchida and Nakagawa (2007) has proved that banks observe each other's for different operation methods in order to reduce the management risk. The situation causes the loans from different banks to some specific industries have existed obvious differentiation when comparing whole partials.…”

Section: Industrial Environmental Factorsmentioning

confidence: 99%

How to Build up the Loan - Evaluation System toward Small and Medium Enterprises between Taiwan and China’s Commercial Banks？ The Application for Multi Criteria Decision Making

Shu¹,

Cheng²,

Guo³

2016

IBR

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Because of the financial market fast development between Taiwan and Mainland China, commercial banks, sometimes, cannot have an efficient method to investigate loan credentials for small and medium enterprises. Without efficient methods, commercial banks are forced to undertake the unnecessary default risks. The article chooses the behaviors of commercial banks between Mainland China and Taiwan to become study target. The purpose is to investigate the assessment method and influence factor of commercial banks toward small and medium enterprises for loan. Through modified Delphi approach and Fuzzy Analytic Hierarchy Process (FAHP) in multi-criteria decision-making (MCDM), the article attempts to analyze the decision-making measure of loan for commercial banks toward small and medium enterprises. From the results of practical evidence, the loan assessment measure of commercial banks between Taiwan and Mainland China is quite different. During loan assessment, China commercial banks focus on the debt-paying ability; on the contrary, Taiwan commercial banks focus on profitability of enterprises. The practical approved result of the study has supplied the insufficient data for related study articles in the past. More, the study can also be an important reference for perform related tasks in Taiwan's and China's commercial banks.

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Herd behavior in the Japanese loan market: Evidence from bank panel data

Cited by 73 publications

References 44 publications

Initial public offering and financing of biotechnology start-ups: Evidence from Japan

Initial public offering and financing of biotechnology start-ups: Evidence from Japan

The Economic Impact of Herd Behavior in the Japanese Loan Market

How to Build up the Loan - Evaluation System toward Small and Medium Enterprises between Taiwan and China’s Commercial Banks？ The Application for Multi Criteria Decision Making

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