紀要論文

Corporate Financing Choices, Deregulations and Corporate Bond Market Development : Lessons from Japan

eng

09111247

https://doi.org/10.15002/00003131

22

1

17

2008-03

Version of Record

Corporate bond market development is important for reducing vulnerabilities to future financial crises by resolving the maturity mismatch problem; this has been a high priority for policymakers in East Asia since the crisis of 1997. Many policy studies have emphasized the importance of bond market infrastructure, including creating benchmark yield curves, roles for credit rating agencies, trading platforms, clearing and settlement systems, and reforming legal systems. This paper is the first that presents corporate bond development as mainly dependant on deregulation. The experiences of Japan and the United States have provided many important lessons that can aid policymakers in East Asian countries. If an over-reliance on short-term debt of East Asian firms is attributable to regulations, removing regulatory constraints on bond issuance is the only effective way to develop East Asian corporate bond markets. Also, competition among regional markets is very important. Allowing firms to go to the euro market, the Tokyo market and other foreign corporate bond markets may be an easy way to reduce vulnerability when domestic market infrastructures are poor or heavily regulated.

Article

AA10459262