@article{6f0f6695e0524e388778746e2aa35107,
title = "The impact of bank entry in the Japanese corporate bond underwriting market",
abstract = "The 1993 Japanese financial system reform allowed banks to enter the underwriting market for corporate bonds through bank-owned security subsidiaries. This paper examines empirically whether underwriting commissions and yield spreads on corporate straight bonds issued domestically fell as a result of this bank entry. The empirical results show that bank entry significantly lowers both underwriting commissions and yield spreads. Commissions charged by banks are significantly lower than those charged by investment houses. Lending and shareholding relationships between the issuer and underwriter are not important in determining commissions or yield spreads.",
keywords = "Bank entry, Commissions, Financial system reform, Underwriting, Yield spreads",
author = "Sumiko Takaoka and McKenzie, {C. R.}",
note = "Funding Information: Both authors wish to thank two anonymous referees for their extremely constructive comments that have led to a significant improvement in the quality of this paper. They also wish to thank the editor, Yoshiaki Shikano, and seminar participants at Keio University for their valuable comments on an earlier version of the paper, Takayuki Atake and Shigeyuki Suzuki for helpful discussions, and Nikko Citigroup Limited for providing the data on corporate bond yield spreads. Financial assistance provided by the Foundation to Promote Research on the Japanese Economy (Nihon keizai kenkyu shorei zaidan) and a Japanese Ministry of Education, Culture, Sports and Technology{\textquoteright}s 21st Century Center of Excellence Program “Development of a Theory of Market Quality and an Empirical Analysis Using Panel Data” awarded to the Graduate Schools of Economics, and Business and Commerce at Keio University is gratefully acknowledged.",
year = "2006",
month = jan,
doi = "10.1016/j.jbankfin.2004.12.005",
language = "English",
volume = "30",
pages = "59--83",
journal = "Journal of Banking and Finance",
issn = "0378-4266",
publisher = "Elsevier",
number = "1",
}