永野 護

Focusing on the sukuk market in Malaysia from 2000–2017, this study estimates the degree of each sample issuer information asymmetry and investigates how it influences sukuk issuance and how it differs by sukuk type. First, we find that a cost-plus-sales-based Murabahah sukuk is available for all sukuk issuers, even though the degree of information asymmetry is high. Second, a lease-based Ijarah sukuk can be chosen by high information asymmetric firms only when the firm has qualified collateral assets. Third, only a low information asymmetric firm can choose a profit-and-loss sharing-based Musyarakah sukuk. Therefore, we conclude that sukuk issuance also follows a financial hierarchy in accordance with the agency costs of each financial methodology required when a specific sukuk is chosen.

This study investigates the factors that promote a bank borrower to issue sukuk rather than conventional debt security in Malaysia and Indonesia from 2000 to 2014. First, our empirical results show that a bank borrower is likely to approach the sukuk market as the funding size grows and if the firm is valued highly. Second, we find that under high information asymmetry, a firm with a high stock price and large funding demand prefers sukuk issuance to conventional debt. We conclude that firms use the sukuk market as an intermediate funding market when the funding demand is too large to borrow from banks and the information asymmetry is too high for them to approach the conventional debt market. (C) 2016 Elsevier B.V. All rights reserved.

Using security issuer data from Malaysia, Indonesia, Saudi Arabia, and the United Arab Emirates from the 2001–2013 period, this study investigates how Islamic bond (Sukuk) issuers differ from conventional debt and equity issuers. An international comparative analysis of these three types of security issuers yields three key insights. First, accessibility to the Sukuk market is essential in choosing Sukuk issuance other determinants will not promote the use of Sukuk, unless this requirement is first satisfied. Second, the low degree of financial constraints on a firm promotes Sukuk issuance, once the required condition of issuer accessibility to the Sukuk market is satisfied. Third, undervaluation of a firm in the pre-issuance period also encourages Sukuk issuance, once the issuer's Sukuk market accessibility condition is satisfied. Taken together, we conclude that Sukuk issuance is preferred along with market timing, once the pecking-order conditions of market accessibility are satisfied.

We analyze the lending relationships between 1011 banks and 17,284 client borrowers across 11 emerging economies. We first demonstrate that a state-owned bank's risk appetite increases as its number of family business group-owned borrowing partners increases. Second, we show that a non-financial firm-owned bank's risk appetite also increases as its number of family business group-owned borrowing partners increases. Finally, we show that a bank is more likely to reduce its risk appetite and improve its operational cost efficiency as its foreign ownership ratio increases, regardless of the bank's lending partner. These findings suggest that, in the post-privatization period, the ownership structure changes of banks and/or borrowers affect the lending relationship and the bank's risk appetite and cost efficiency. (C) 2016 Elsevier B.V. All rights reserved.

We investigate determinants of household leverage in Japan, which did not experience the sharp rise in real estate prices and dramatic securitized mortgage market developments in the 2000s, and prove that these determinants are not universal. We employ household sample data collected during 2001-2010 by the Japan Housing Finance Agency and the Nikkei NEEDs Radar Financial Survey, totaling to 28,561 samples. We find that the degree of household interest rate risk preference, which proxies the household constitutional and behavioral factors including risk tolerance, positively relates to the household debt to income ratio. Further, as regards residential mortgage loans, these interest rate risk-preferring households buy higher-priced houses relative to their income, hold fewer financial assets, and tend to be headed by young males. We also find similarities between household mortgage debt determinants in Japan and the United States: the degree of regional bank market competition and the state of bank management soundness influence the aggressiveness of the residential mortgage loan business.

Firms choose either cross-border M&amp A or greenfield foreign direct investment (FDI) when expanding their operations overseas. In this study, by focusing on Japanese firms pursuing FDI in emerging countries in Asia and Oceania, we provide empirical evidence of the similarities and differences in cross-border M&amp A and greenfield FDI determinants. We derive the following four main conclusions. First, an increase in host-country population size and decreases in per capita income and corporate tax rates generally attract both inward cross-border M&amp A and greenfield FDI to the host country. Second, however, a home-country firm tends to choose cross-border M&amp A rather than greenfield FDI when the host country sufficiently implements shareholder rights laws and the firm tends to choose greenfield FDI rather than cross-border M&amp A when the host country adequately enforces intellectual property rights laws. Third, a firm tends to choose greenfield FDI when the firm already has regional networks in the host country and choose cross-border M&amp A when the purpose of the firm's overseas operations is to establish sales distribution channels. Finally, a firm pursuing cross-border M&amp A experiences higher cumulative abnormal returns in its stock prices following the investment, while a firm pursuing greenfield FDI experiences increases in its stock prices immediately before the investment. © 2013 Elsevier B.V.

This paper investigates the causes and consequences of inward cross-border acquisitions in emerging countries. The focus is on business deals made by firms in China and India, where government ownership ratios remain high. Our empirical analysis yields two important findings. First, the Chinese and Indian firms targeted by foreigners have statistically higher cash-reserve ratios and growth opportunities that do not attract domestic acquirers. This result suggests that both target characteristics are required to influence the inward investment decisions of foreign firms. Second, shareholder value created through cross-border acquisitions is higher for foreign acquirers than for domestic acquirers. This finding implies that investment returns on foreign acquisitions in high-growth emerging markets in which governments promote state-owned share releases are higher than returns from domestic takeovers. It also explains why the number of cross-border deals has recently increased in these countries. © 2012 Elsevier Inc.

This study analyzes the effects of managerial ownership on the risk-taking behavior of Korean and Japanese banks during the relatively regulated period of the late 1990s to the early 2000s. It finds that managerial ownership alone does not affect either the risk or the profit levels of Korean banks. In contrast, an increase in managerial ownership adds to the total risk of Japanese banks. However, increased risk-taking behavior does not produce higher levels of profit for Japanese banks. The coefficients of the interaction term between franchise value and managerial ownership are negative and statistically significant for both the Korean and the Japanese banking industries. This means that an increase in managerial ownership in banks with high franchise values discourages risk-taking behavior. The results confirm the disciplinary role of franchise value on the risk-taking behavior of banks. These results also fall in line with previous literature supporting the moral hazard hypothesis based on research into the economies of the USA and other countries.

Reflecting recent merger trends in the banking industry of Korea and Japan, this paper examines the degree of competition before and after the bank merger wave. Two major implications are derived from empirical analyses. First, high levels of banking market competitiveness are detected after mergers in both the Korean and Japanese metropolitan areas. Second, although the level of market competition remains low throughout Japanese local cities, it is competitive compared with the metropolitan area of Korea. This paper concludes that market concentration brought about by bank mergers does not always result in low competitiveness.

This paper examines financial data and credit ratings of corporate bond issuers in East Asia. The empirical results suggest that the U.S.-based credit agency principally monitors issuers' creditworthiness as a determinant of corporate bond ratings. In contrast, local agencies focus on profitability and firm size. We consider that the similarities and differences in determinants originate from the following: (1) the business experience of agencies and (2) the degree of development of each individual market. © by The Haworth Press, Inc. All rights reserved.

Focusing on the electronics industry, this paper verifies and compares how bipolar R&amp D policy contributed to growth in productivity in Korea and Taiwan. Two implications are derived from the empirical results. First, in Korea, government's business group-centered R&amp D policy encouraged private R&amp D expenditure rather than public R&amp D infrastructure. Second, and in contrast, publicly funded R&amp D infrastructure capital stock, in recent years, significantly induced private R&amp D expenditures of Taiwanese electronics firms. These two implications suggest that there are various potential ways to cope with externalities associated with R&amp D investment in emerging countries. © 2006 Elsevier Inc. All rights reserved.