dc.contributor.authorKang, Jun-Koo
dc.contributor.authorKim, Kenneth A.
dc.contributor.authorKitsabunnarat-Chatjuthamard, P.
dc.contributor.authorNishikawa, Takeshi
dc.identifier.citationKang, J. K., Kim, K. A., Kitsabunnarat-Chatjuthamard, P., & Nishikawa, T. (2011). The effects of bank relations on stock repurchases: Evidence from Japan. Journal of Financial Intermediation, 20(1), 94-116.en_US
dc.description.abstractThis paper examines the effects that bank relations have on stock repurchases in Japan. Similar to US evidence, we find that stock repurchase announcements in Japan have positive announcement period returns. Announcement returns are positively related to equity ownership by main banks, but are negatively related to nonbank debt ratios. In contrast, bank debt ratios do not have such a negative relation. Announcement returns are also negatively related to future growth opportunities, suggesting that repurchase announcements are greeted more positively by investors when repurchasing firms have lower growth opportunities. We also find that firms with high leverage are less likely to repurchase stocks, whereas firms with high equity ownership by main banks are more likely to do so. Overall, these results are consistent with the views that banks, particularly main banks, are effective monitors of agency costs and financial distress risk, and that their presence as dual stakeholders are value-enhancing.en_US
dc.format.extent23 p.en_US
dc.relation.ispartofseriesJournal of financial intermediationen_US
dc.rights© 2010 Elsevier Inc. This is the author created version of a work that has been peer reviewed and accepted for publication by Journal of Financial Intermediation, Elsevier Inc. It incorporates referee’s comments but changes resulting from the publishing process, such as copyediting, structural formatting, may not be reflected in this document. The published version is available at: [http://dx.doi.org/10.1016/j.jfi.2010.06.001].en_US
dc.subjectDRNTU::Business::Finance::Stock exchanges
dc.titleThe effects of bank relations on stock repurchases : evidence from Japanen_US
dc.typeJournal Article
dc.contributor.schoolCollege of Business (Nanyang Business School)en_US
dc.description.versionAccepted versionen_US

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