There has been increasing academic interest in determining whether and how outside board membersaffect firm performance. A well-documented economic phenomenon in Japan is the role of banks on their corporate clients. Specifically, this study examines whether outside board members from the main bank team, as well as different types of bankswithin the main bank team,impact earnings management after the global financial crisis in 2008. We found that the main bank team does not affect managerial opportunistic accounting policies. Our results also show that the involvement of commercial banks, which have outside board members and stockholders in the focal firms, is not related to their clients' earnings management. However, stock ownership by trust banks is positively related to their clients' earnings management. These findings are consistent with the Tokyo Stock Exchange stockholding data from 1986 to 2011, which illustrates a higher percentage of stock ownership by trust banks and a lower percentage by commercial banks after 2000.
|Number of pages||24|
|Journal||International Journal of Economic Research|
|Publication status||Published - 2015 Jan 1|
All Science Journal Classification (ASJC) codes
- Business, Management and Accounting(all)
- Economics, Econometrics and Finance(all)