Does Privatization of a Postal Savings Bank in Japan Have Economic Value?

.
DOI: 10.4236/ib.2011.33032   PDF   HTML     5,715 Downloads   8,471 Views   Citations

Abstract

Economic theory traditionally supports the viewpoint that government ownership is inefficient and that privatization invariably leads to efficiency improvements. However, there is often frequent opposition to privatization activity because it is difficult to examine and empirically validate the effects of privatization. This is the first study to examine the impact of the privatization of postal saving banks. In this paper, we use event study and find that impacts of the privatization of a postal savings bank in Japan are evaluated as positive. We also find that the privatization of the postal savings bank threatened other banks in rural areas that had hitherto enjoyed a regional monopoly.

Share and Cite:

K. Oohama and Y. Asai, "Does Privatization of a Postal Savings Bank in Japan Have Economic Value?," iBusiness, Vol. 3 No. 3, 2011, pp. 244-247. doi: 10.4236/ib.2011.33032.

Conflicts of Interest

The authors declare no conflicts of interest.

References

[1] M. A. Crew, P. R. Kleindorfer and J. I. Campbell Jr., “Handbook of Worldwide Postal Reform,” Edward Elgar, Cheltenham, 2009.
[2] C. Eckel, D. Eckel and V. Singal, “Privatization and Efficiency: Industry Effects of the Sale of British Airways,” Journal of Financial Economics, Vol. 43, No. 2, 1997, pp. 275-298. doi:10.1016/S0304-405X(96)00893-8
[3] I. Otchere, “Competitive and Value Effects of Bank Privatization in Developed Countries,” Journal of Banking and Finance, Vol. 33, No. 2, 2009, pp. 2373-2385. doi:10.1016/j.jbankfin.2009.06.014
[4] Y. Kaneko and M. Metoki, “Postal Savings for National Development—The Experience of Japan and Future Perspective in a Globalized World,” Public Organization Review, Vol. 8, No. 3, 2008, pp. 233-252. doi:10.1007/s11115-008-0052-9
[5] N. Yamori and A. Murakami “Does Bank Relationship Have an Economic Value? The Effect of Main Bank Failure on Client Firms,” Economics Letters, Vol. 65, No. 1, 1999, pp. 115-120. doi:10.1016/S0165-1765(99)00133-0

  
comments powered by Disqus

Copyright © 2020 by authors and Scientific Research Publishing Inc.

Creative Commons License

This work and the related PDF file are licensed under a Creative Commons Attribution 4.0 International License.