egory of non-operating revenues. Among such non-operating revenues are included the capital gains realized from the sales of securities owed by the borrowing company. Companies whose operating profits have drastically fallen often sell the securities they own as a method of restraining the fall of business profits; this device itself have no direct connection with whether risk-sharing exists through the main bank mechanism.The point of the paper was to investigate whether or not the main bank relationship in Japan actually performs a risk-sharing function. It investigated this issue from two angles. The first was to examine the relationship between changes in main bank affiliations and changes in the uncertainty that borrowing companies were confronted with. The second was to examine whether the main bank relationship actually contributed to offsetting movements in the operating performance of individual companies. Both of these examinations suggest negative conclusion; in general, no systematic relationships can be observed which would indicate the existence of risk-sharing between main banks and their major customers....
