Herd Behavior in the Japanese Loan Market: Evidence from Semi-Macro Data
Year: 2003
Type: article
Abstract: The aim of this paper is to examine whether herd behavior exists or not between di#erent types of Japanesebanke Using data of loans outstanding by types ofbank from 1980 to 2000, we investigate statistical causality between loans from di#erent types ofbank in Japan. Time-series analysis manifested the causality from citybank to regionalbankn from long-term creditbank to citybankfi and from trust bank to citybank) Consistent with historical events in Japan, these relationships have been found especially for loans to emerging industries and for those in the 1980s. We also conducted analysis to clarify possible causes of the detected herding. Among di#erent stories behind herd behavior, the results are most consistent with that based on inference from other type ofbank[ The results between long-term credit bank and citybankfi and those between trust bank and citybank are also consistent with the "Cowbell-lik e" e#ect.
Authors: Ryuichi Nakagawa, Hirofumi Uchida
Institutions: Hiroshima University of Economics, Wakayama University
Language: English
Subfield: Finance
Domain: Social Sciences
Open Access status: green
OpenAlex ID: W1555769201