This paper examines the effectiveness of Japans 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...

In this paper, we investigate whether financial shocks to firms affect their probability of bankruptcy. We also examine whether these shocks affect the natural selection of the firms, whereby more efficient firms are less likely to go bankrupt. By using the data on the bankruptcy of firms after...

This paper investigates how debt market frictions affect real firm behaviors such as capital structures and investments differently based on whether a firm has access to the public debt market, taking debt structure differences into account. To this aim, using the natural experimental approach...

We present evidence that government-controlled banks (GCBs) significantly increased their lending to small and medium-sized enterprises (SMEs) whose main bank was a large bank in the 2007–09 financial crisis. Further analyses show that both the weak relationship between large banks and SMEs...

We present evidence that government-controlled banks (GCBs) significantly increased their lending to small and medium-sized enterprises (SMEs) whose main bank was a large bank in the 2007-09 financial crisis. Further analyses show that both the weak relationship between large banks and SMEs and...