Hosono, Kaoru; Miyakawa, Daisuke; Uchino, Taisuke; … - Center for Interfirm Network, Institute of Economic Research - 2012
This paper investigates the effect of banks’ lending capacity on firms’ capital investment. To overcome the difficulties in identifying purely exogenous shocks to firms’ bank financing, we utilize the natural experiment provided by the Great Hanshin-Awaji (Kobe) Earthquake in 1995. Using a...