Firm Investment and Balance-Sheet Problems in Japan /

This paper investigates whether balance-sheet conditions of firms and their main banks matter for firm investment behavior using dynamic corporate panel data in Japan for the period 1985-95. It finds that smaller non-bond issuing firms were facing liquidity constraints; these firms' balance-she...

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গ্রন্থ-পঞ্জীর বিবরন
প্রধান লেখক: Sekine, Toshitaka
বিন্যাস: পত্রিকা
ভাষা:English
প্রকাশিত: Washington, D.C. : International Monetary Fund, 1999.
মালা:IMF Working Papers; Working Paper ; No. 1999/111
অনলাইন ব্যবহার করুন:Full text available on IMF
বিবরন
সংক্ষিপ্ত:This paper investigates whether balance-sheet conditions of firms and their main banks matter for firm investment behavior using dynamic corporate panel data in Japan for the period 1985-95. It finds that smaller non-bond issuing firms were facing liquidity constraints; these firms' balance-sheet conditions (the debt asset ratios) affected their investment from the midst of the bubble era by influencing main banks' lending to them; and the deterioration of their main banks' balance-sheet conditions constrained these firms' investment from about 1993. These findings highlight the potential macroeconomic impact and importance of the credit channel of monetary policy, and support the case of a credit crunch facing small Japanese firms during this period.
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দৈহিক বর্ননা:1 online resource (32 pages)
বিন্যাস:Mode of access: Internet
আইএসএসএন:1018-5941
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