This paper presents an overview of the extant literature on the real impacts of financial constraints, with a particular focus on those originating from adverse shocks on bank lending. While numerous studies have been conducted to establish the causal linkage between negative fund supply shocks...

In this paper, we investigate whether a natural selection works for firm exit after a massive natural disaster. By using a unique data set of more than 84,000 firms after the Great Tohoku Earthquake, we examine the impact of firm efficiency on firm bankruptcy both inside and outside the...

A firm’s choice of location is very important because it reveals the firm’s dynamics. Using a unique firm-level data set, we examine whether and how the presence of incumbent transaction partners (i.e., suppliers, customers, and lender banks) affects this choice. To this end, we focus on...