This paper examines the economic impact of the collateral and the bank lending channels simultaneously by taking advantage of exogenous shocks to a firm’s tangible assets and a bank’s net worth caused by the massive Tohoku earthquake in 2011. We obtain the following findings: (1) damages to...

We test the convergence of real income using the Philippine regional data over the period of 1980-2000. Differences in real income across regions were large and persistent. Though regional incomes did not converge towards a common level (absolute convergence), they did converge controlling for...

This paper investigates the effects of the ownership structure on the R&D intensity. Using the Japanese machine-manufacturing firm data from 1987 till 1998, we first found that the effects of R&D on stock market valuation and TFP growth were significantly positive in the latter half of the...

Using Japanese firm data in the machinery industry over 1987 through 1996, we found that the ratio of bank loan to debt is negatively related to R&D expenditure, profitability and size. We also found that the close relationship with the main bank, measured by its loan share and the transfer of...

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...

We propose a framework to examine banks’ asset securitization program. It provides a comprehensive view that explains various separate findings and claims in the literature. We derive optimal timing and quantity of banks’ asset securitization by explicitly incorporating stochastic asset...