Foreign direct investment and regulatory remedies for banking crises: Lessons from Japan

Journal of International Business Studies

Volumn 42, Issue 7, 2011, Pages 875-893

  Allen, Linda ^a   Chakraborty, Suparna ^a   Watanabe, Wako ^b  

^a CITY UNIVERSITY OF NEW YORK   (United States)

^b KEIO UNIVERSITY   (Japan)

Author keywords

accounting changes; bank lending; banking crisis; capital interventions; internalization theory; public capital injections

Indexed keywords

EID: 80052650912     PISSN: 00472506     EISSN: 14786990     Source Type: Journal    
DOI: 10.1057/jibs.2011.17     Document Type: Article

References (39)

1. Acharya, V. V., Pedersen, L., Philippon, T., & Richardson, M. 2009. Regulating systemic risk. In V. V. Acharya & M. Richardson (Eds), Restoring financial stability: How to repair a failed system: 283-304. Hoboken, NJ: Wiley.
2. Ahuja, G., & Katila, R. 2004. Where do resources come from? The role of idiosyncratic situations. Strategic Management Journal, 25(8/9):887-907.
3. Allen, L., & Pantzalis, C. 1996. Valuation of the operating flexibility of multinational corporations. Journal of International Business Studies, 27(4):633-653. (Pubitemid 126314547)
4. Allen, L., Bali, T., & Tang, Y. 2010. Does systemic risk in the financial sector predict future economic downturns? Working Paper, Baruch College, City University of New York.
5. Anand, J., & Delios, A. 2002. Absolute and relative resources as determinants of international acquisitions. Strategic Management Journal, 23(2):119-134.
6. Bayazitova, D., & Shivdasani, A. 2009. Assessing TARP, Mimeo, Kennan-Flagler Business School, University of North Carolina, Chapel Hill.
7. Beck, N., & Katz, J. N. 1995. What to do (and not to do) with time-series cross section data. American Political Science Review, 89(3):634-647.
8. Bernanke, B. S., & Lown, C. S. 1991. The credit crunch. Brookings Papers on Economic Activity, 2:205-248.
9. Breeden, D., & Viswanathan, S. 1990. Why do firms hedge? An asymmetric information model, Working Paper, Duke University.
10. Caballero, R. J., Hoshi, T., & Kashyap, A. K. 2008. Zombie lending and depressed restructuring in Japan. American Economic Review, 98(5):1943-1977.
11. DeMarzo, P., & Duffie, D. 1995. Corporate incentives for hedging and hedge accounting. Review of Financial Studies, 8(3):743-771.
12. Dunning, J. 1973. The determinants of international production. Oxford Economics Papers, 25(3):289-336.
13. Dunning, J. 1988. The eclectic paradigm of international production: A restatement and some possible extensions. Journal of International Business Studies, 19(1):1-31.
14. Dunning, J., & Narula, R. 1996. Foreign direct investment and governments. London and New York: Routledge.
15. Froot, K., & Stein, J. 1991. Exchange rates and foreign direct investment: An imperfect capital markets approach. Quarterly Journal of Economics, 106(4):1191-1217.
16. Gande, A., John, K., & Senbet, L. 2008. Bank incentives, economic specialization, and financial crises in emerging economies. Journal of International Money and Finance, 27(5):707-732.
17. Ghemawat, P. 2003. Semiglobalization and international business strategy. Journal of International Business Studies, 34(2):138-152. (Pubitemid 36657259)
18. Giannetti, M., & Simonov, A. 2009. On the real effects of bank bailouts: Micro-evidence from Japan, Working Paper No. 260/2009, ECGI Working Paper Series in Finance.
19. Hancock, D., & Wilcox, J. A. 1993. Has there been a "capital crunch" in banking? The effects on bank lending of real estate market conditions and bank capital shortfalls. Journal of Housing Economics, 3(1):75-105.
20. Himino, R. 2005. BIS Kisei to Nippon (The Basel regulations and Japan). Kinyuzaiseijijo Kenkyukai, (in Japanese).
21. Hoshi, T., & Kashyap, A. K. 1999. The Japanese banking crisis: Where did it come from and how will it end? NBER Macroeconomics Annual, 14:129-212.
22. Hoshi, T., & Kashyap, A. K. 2010. Will the US bank recapitalization succeed? Eight lessons from Japan. Journal of Financial Economics, 97(3):398-417.
23. Hoshi, T., Kashyap, A. K., & Scharfstein, D. 1991. Corporate structure, liquidity and investment: Evidence from Japanese industrial groups. Quarterly Journal of Economics, 106(1):33-60.
24. Kang, J. K., & Stulz, R. M. 2000. Do banking shocks affect borrowing firm performance? An analysis of the Japanese experience. Journal of Business, 73(1):1-23.
25. Kehoe, T., & Levine, D. 1993. Debt-constrained asset markets. Review of Financial Studies, 60(4):865-888.
26. Kipping, M. 1999. American management consulting companies in Western Europe, 1920 to 1990: Products, reputation and relationships. The Business History Review, 73(2):190-220.
27. Klein, M., Peek, J., & Rosengren, E. 2002. Troubled banks, impaired foreign direct investment: The role of relative access to credit. American Economic Review, 92(3):664-682.
28. Montgomery, H., & Shimizutani, S. 2009. The effectiveness of bank recapitalization policies in Japan. Japan and the World Economy, 21(1):1-25.
29. Myers, S. 1977. Determinants of corporate borrowing. Journal of Financial Economics, 5(2):147-175.
30. Peek, J., & Rosengren, E. S. 2000. Collateral damage: Effects of the Japanese bank crisis on real activity in the United States. American Economic Review, 90(1):30-45.
31. Peek, J., & Rosengren, E. S. 2005. Unnatural selection: Perverse incentives and the misallocation of credit in Japan. American Economic Review, 95(4):1144-1166. (Pubitemid 43015663)
32. Philippon, T., & Schnabl, P. 2009. Efficient recapitalization, NBER Working Paper No. 14929, National Bureau of Economic Research.
33. Rampini, A., & Viswanathan, S. 2010. Collateral, risk management and the distribution of debt capacity. Journal of Finance, 65(6):2293-2322.
34. Reuer, J., Shenkar, O., & Ragozzino, R. 2004. Mitigating risk in international mergers and acquisitions: The role of contingent payouts. Journal of International Business Studies, 35(1):19-32. (Pubitemid 38739712)
35. Smith, C., & Stulz, R. 1985. The determinants of firms' hedging policies. Journal of Financial and Quantitative Analysis, 20(4):391-405.
36. Tschoegl, A. E. 2002. FDI and internationalization: Evidence from US subsidiaries of foreign banks. Journal of International Business Studies, 33(4):805-815.
37. Uchida, H., & Nakagawa, R. 2007. Herd behavior in the Japanese loan market: Evidence from bank panel data. Journal of Financial Intermediation, 16(4):555-583.
38. Wilkins, M. 1990. Japanese multinationals in the United States: Continuity and change, 1879-1990. The Business History Review, 64(4):585-629.
39. Wooldridge, J. M. 2002. Econometric analysis of cross section and panel data. Cambridge, MA: Massachusetts Institute of Technology Press.