This book addresses issues in the current literature on corporate
finance using historical evidence. In particular it looks at the
role of universal banks in relaxing the credit constraints of
firms, supervising managers and stabilizing share prices. The key
issues is whether the Anglo-American asset based financing is more
efective than the main-bank approach used in Germany and Japan.
Earlier studies have found that firms with a close relationship
with a major bank have high market value compared to book value,
although it is difficult to determine whether this is cause or
effect
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