Book

Cambridge University Press Books

Banks, Finance and Investment in Germany

This book analyses the widely held view of the merits of the 'bank-based' German system of finance for investment, and shows that this view is not supported by the evidence from the post-war period. The institutional features of the German system are such that universal banks have control of voting rights at shareholders' meetings due to proxy votes, and they also have representation on companies' supervisory boards. These features are claimed to have two main benefits. One is that the German system reduces asymmetric information problems, enabling banks to supply more external finance to firms at a lower cost, and thus increasing investment. The other is that the German banks are able to monitor and control managements of firms on behalf of shareholders, and thus ensure that firms are run efficiently. This book assesses whether empirical evidence backs up these claims, and shows that the merits of the German system are largely overrated.

Citation

Edwards, J (1994), ‘Banks, Finance and Investment in Germany‘, CEPR Press, Paris & London. https://cepr.org/publications/books-and-reports/banks-finance-and-investment-germany

Citation

Edwards, J (1994), ‘Introduction: Banks, Finance and Investment in Germany‘, in Edwards, J (eds), Banks, Finance and Investment in Germany, CEPR Press, Paris & London. https://cepr.org/publications/books-and-reports/banks-finance-and-investment-germany

Citation

Edwards, J (1994), ‘A theoretical framework for analysing the effects of the financial system on economic performance‘, in Edwards, J (eds), Banks, Finance and Investment in Germany, CEPR Press, Paris & London. https://cepr.org/publications/books-and-reports/banks-finance-and-investment-germany

Citation

Edwards, J (1994), ‘The significant of bank loans in the finance of aggregate investment in Germany‘, in Edwards, J (eds), Banks, Finance and Investment in Germany, CEPR Press, Paris & London. https://cepr.org/publications/books-and-reports/banks-finance-and-investment-germany

Citation

Edwards, J (1994), ‘Legal forms of enterprise in Germany, and their implications for the role of the German financial system‘, in Edwards, J (eds), Banks, Finance and Investment in Germany, CEPR Press, Paris & London. https://cepr.org/publications/books-and-reports/banks-finance-and-investment-germany

Citation

Edwards, J (1994), ‘The structure of the German banking system‘, in Edwards, J (eds), Banks, Finance and Investment in Germany, CEPR Press, Paris & London. https://cepr.org/publications/books-and-reports/banks-finance-and-investment-germany

Citation

Edwards, J (1994), ‘Bank supervisory board representation and other aspects of German bank lending to firms‘, in Edwards, J (eds), Banks, Finance and Investment in Germany, CEPR Press, Paris & London. https://cepr.org/publications/books-and-reports/banks-finance-and-investment-germany

Citation

Edwards, J (1994), ‘German bank behaviour when firms are in financial distress‘, in Edwards, J (eds), Banks, Finance and Investment in Germany, CEPR Press, Paris & London. https://cepr.org/publications/books-and-reports/banks-finance-and-investment-germany

Citation

Edwards, J (1994), ‘The ownership structure of large German firms, and its implications for German banks' corporate control role‘, in Edwards, J (eds), Banks, Finance and Investment in Germany, CEPR Press, Paris & London. https://cepr.org/publications/books-and-reports/banks-finance-and-investment-germany

Citation

Edwards, J (1994), ‘Do German banks act as delegated exercises of equity's control rights?‘, in Edwards, J (eds), Banks, Finance and Investment in Germany, CEPR Press, Paris & London. https://cepr.org/publications/books-and-reports/banks-finance-and-investment-germany

Citation

Edwards, J (1994), ‘Conclusion: Banks, Finance and Investment in Germany‘, in Edwards, J (eds), Banks, Finance and Investment in Germany, CEPR Press, Paris & London. https://cepr.org/publications/books-and-reports/banks-finance-and-investment-germany

The World Bank: Structures and Policies
Book

The World Bank: Structures and Policies

Migration: the Controversies and the Evidence
Book

Migration: the Controversies and the Evidence