Kawai, Norifumi and Ko, Jong-Hwan (2012) The dark sides of institutionalized informal connections: evidence from the Japanese banking sector in the post-bubble crisis era. International Journal of Business, 17 (3). pp. 238-257. ISSN 1083-4346
![]() |
PDF
- Published Version
Restricted to SRO admin only Download (533kB) |
Abstract
This study focuses on the role of corporate political resources in shaping firm strategy in an extension of resource dependence theory. Using a sample of 92 regional banks for the period 1997-2004 in Japan, this paper explores the effect of amakudari (translated as the appointment of former bureaucrats to the boards of directors of private organizations) on the performance and managerial risk-taking of banks. We found that amakudari networks have a negative impact on a bank’s profitability in the post-bubble crisis era when firm-specific and other variables are controlled. In addition, the evidence shows that a bank appointing more ex-bureaucrats to its board of directors has a tendency to get involved in more risky lending activities. Furthermore, the empirical results of this study are also found to be robust using the Arellano-Bond GMM estimator.
Item Type: | Article |
---|---|
Schools and Departments: | Brighton and Sussex Medical School > Brighton and Sussex Medical School |
Subjects: | H Social Sciences > HG Finance H Social Sciences > HG Finance > HG1501 Banking > HG2397 By region or country |
Related URLs: | |
Depositing User: | Norifumi Kawai |
Date Deposited: | 07 Aug 2012 09:17 |
Last Modified: | 08 Mar 2017 06:33 |
URI: | http://srodev.sussex.ac.uk/id/eprint/40240 |
View download statistics for this item
📧 Request an update