• Publications
  • Influence
Zombie Lending and Depressed Restructuring in Japan
In this paper, we propose a bank-based explanation for the decade-long Japanese slowdown following the asset price collapse in the early 1990s. We start with the well-known observation that most
Corporate Structure, Liquidity, and Investment: Evidence from Japanese Industrial Groups
This paper presents evidence suggesting that information and incentive problems in the capital market affect investment. We come to this conclusion by examining two sets of Japanese firms. The first
Will the U.S. Bank Recapitalization Succeed? Eight Lessons from Japan
During the financial crisis that started in 2007, the U.S. government has used a variety of tools to try to rehabilitate the U.S. banking industry. Many of those strategies were also used in Japan to
The Choice between Public and Private Debt: An Analysis of Post-Deregulation Corporate Financing in Japan
As a result of deregulation, there was a dramatic shift during the 1980s in Japan away from bank debt financing towards public debt financing: in 1975, more than 90% of the corporate debt of public
The Japanese Banking Crisis: Where Did it Come from and How Will it End?
We argue that the deregulation leading up to the Big Bang has played a major role in the current banking problems. This deregulation allowed large corporations to quickly switch from depending on
Japan's Financial Crisis and Economic Stagnation
We survey the macroeconomic stagnation and financial problems in Japan. The financial sector assessment includes separate analyses of the commercial banks, the life insurance companies and the
Economics of the Living Dead
  • T. Hoshi
  • Economics, Business
  • 1 March 2006
Zombie firms are those firms that are insolvent and have little hope of recovery but avoid failure thanks to support from their banks. This paper identifies zombie firms in Japan, and compares the
Corporate Financing and Governance in Japan: The Road to the Future
In this book Takeo Hoshi and Anil Kashyap examine the history of the Japanese financial system, from its nineteenth-century beginnings through the collapse of the 1990s that concluded with sweeping
Bank Monitoring and Investment: Evidence from the Changing Structure of Japanese Corporate Banking Relationships
During this decade the structure of corporate finance in Japan has changed dramatically. Japanese firms that once used bank debt as their prime source of financing now rely more heavily on the public