The Impacts of Main-Bank (relationship) on Financial Distressed Companys

• Main Authors: Tsai-huang Liou, 劉才煌
• Other Authors: Yenpao Chen
• Format: Others
• Language: zh-TW
• Published: 2003
• Online Access: http://ndltd.ncl.edu.tw/handle/99476937743575227547

碩士 === 東吳大學 === 會計學系 === 91 === 　Because of the startling developments and immense changes that have occurred in the Japanese economy over the post-war period, the unique financial system, main bank system, becomes noticeable. The period that roughly corresponds to the high-growth era from the early 1950s to the early 1970s can be seen as the heyday of the main bank system. In the later 1980s, certain banks were listed on the top 10 of world’s giant banks. Such accomplishment could be regarded as financial miracle. 　The summary findings of performances of two category’s company (with main-bank and without main-bank) in two periods (with financial distress and without financial distress) in this study are that: 1. Company with main-bank in financial distress period would not gain interest expenses alleviation from main-bank, but would have lower interest rate in not-distress period. 2. Company without main-bank would decrease loans in not-distress period, but their loans in distress period do not have any divergence compared to company with main-bank in distress and not-distress period. 3. Recovery performances of company with main-bank from financial distress are better than company without main-bank, but are not always prominent. 4. The fluctuation of turnover of asset, returns of common equity, net sales and current ratio of company with main-bank are more stable than company without main-bank. 　In a tough financial governance circumstance, for banks themselves, constructing main-bank system could alleviate credit risk and NPL; For corporate governance, main-bank could get more inside information. In addition, it could be one of stockholders so that it could even get published or unpublished information instantly. Due to the dual roles of creditor and stockholder, main-bank would correct or disclosure the bad behavior of incumbent management; For company, it would get stable loans, and would have lower interest rate owing to their lower credit risk.