To clarify the causal links between financial activity and economic growth, three theoretical models are analyzed and a structural equation path models is estimated. In the modeling part, poverty traps result from large fixed costs or high proportions of real investment to run a financial...

This study examines the effectiveness of bank recapitalization policies in Japan. Based on a reading of the "business revitalization plan" submitted by banks requesting government funds, we identify four primary goals for the capital injection plan in Japan: (1) to increase the bank capital...

This study examines the effectiveness of bank recapitalization policies in Japan. Based on a careful reading of the “business revitalization plan” submitted by banks requesting government funds, we identify four primary goals of the capital injection plan in Japan: 1) to increase the bank...

This paper analyzes the long-run performance of 427 issues or 387 Japanese firms that made Seasoned Equity Offerings (SEO) from 1980-1990. We find that as opposed to U.S. SEO's that concentrate on either growth firms (low book-to-market) or small firms, Japanese SEO's under our study period...