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.
Cite this paper
nullK. 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.
 M. A. Crew, P. R. Kleindorfer and J. I. Campbell Jr., “Handbook of Worldwide Postal Reform,” Edward Elgar, Cheltenham, 2009.
 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
 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.
 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.
 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