TY  - JOUR
AU  - Hayashi,Fumio
TI  - The Main Bank System and Corporate Investment: An Empirical Reassessment
JF  - National Bureau of Economic Research Working Paper Series
VL  - No. 6172
PY  - 1997
Y2  - September 1997
UR  - http://www.nber.org/papers/w6172
L1  - http://www.nber.org/papers/w6172.pdf
N1  - Author contact info:
Fumio Hayashi
Hitotsubashi University
Grad. School of International Corporate Strategy
2-1-2 Hitotsubashi, Chiyoda-ku
Tokyo 101-8439
JAPAN
Tel: 81-3-5841-5652
Fax: 1-801-469-0086
E-Mail: fumio.hayashi@gmail.com
AB  - This paper examines whether the sensitivity of corporate investment to internal funds depends on the firm's access to a main bank, using the sample of Japanese manufacturing firms constructed by Hayashi and Inoue (1991).  For either of two classifications of firms by their access to a main bank, there is no evidence that main bank ties mitigate the sensitivity of investment to the firm's liquidity.  The large effect of main bank ties reported in Hoshi, Kashyap, and Scharfstein (1991) is most likely due to the relatively poor quality of their capital stock estimate.
ER  -