This paper examines the effectiveness of Japan's Emergency Credit Guarantee (ECG) program set up during the financial turmoil following the failure of Lehman Brothers, in increasing credit availability and improving the ex-post performance of small businesses. In particular, using a unique...

This paper investigates the effect of financial shocks on firms' exports. To circumvent endogeneity problems, we utilize the natural experiment provided by the Great Hanshin-Awaji Earthquake in 1995. Using a unique firm-level dataset, we single out the effect of exogenous financial shocks on...

Studies of trading firm finance focus on the various credit instruments used by general trading companies and uncover new knowledge about the relationship between trade credit (i.e. inter-company credit) and loans (i.e. credit from financial institutions). Theories concerning trade credit...

This paper summarizes the results of two questionnaires presented to small and medium size enterprises (SMEs) by RIETI in February 2008 and February 2009. Given the limited data on SMEs, the purpose of the questionnaires is to understand the current status of financing for SMEs facing this...

We study the impact of the Great Hanshin-Awaji Earthquake on firm dynamics and obtain implications for the recent Great East Japan Earthquake. By using unique micro-level data for a maximum of 90,000 firms, we examine the impact of the earthquake on firms' default, relocation, and investment...

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...

This paper investigates the role of inter-firm transaction structure on industrial agglomeration by using Japanese firm-level transaction relationship data. First, we measure the industrial agglomeration for each industry. Next, we measure the intensity of transactions and inequalities of...

In this paper, we investigate whether 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 Tohoku Earthquake, we examined the impact of firm efficiency on firm bankruptcy both inside and outside of the...

Employing massive contract- and firm-level data provided by the Small and Medium Enterprise (SME) Unit of the Japan Finance Corporation (JFC), one of the largest government lending institutions for SMEs, and linking the data with other firm-level data from a business credit information company,...

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 those...