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Shareholding in the Keiretsu, Japan's Financial Groups

David Flath

The Review of Economics and Statistics 1993

Largest debtholders in keiretsu member companies hold more stock if the companies have high debt-to-equity ratios or have weaker collateral, greater prospects of growth, or unique aspects. All are factors associated with the agency problems of debt that stockholding by a debtholder can help to resolve. The stockholding also induces greater borrowing by these same companies, ceteris paribus. Copyright 1993 by MIT Press.

DOI
10.2307/2109430
Volume
75 (2)
Pages
249
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