Priority Rule Violations and Perverse Banking Behaviors: Theoretical Analysis and Implications of the 1990s Japanese Loan Markets (2017)Paperback - 2017, 15 September 2017

Provides theoretical arguments to consistently explain contradictory-appearing Japanese banking behaviors in the 1990s, i.e., the credit crunch and inefficient additional lending

Differs from the typical explanations of the credit crunch that are based mainly on the debt overhang theory or BIS regulation of capital adequacy ratios

Explores the optimal legal rule or scheme for insolvent firms to make efficient investment decisions