We demonstrate theoretically and empirically the presence of forbearance lending by profit-maximizing banks to influential buyers in a supply network. If the financial market is concentrated, then banks can internalize the negative externality of an influential firm's exit. As a result, they may...

This online appendix includes supplemental materials for "Network-motivated Lending Decisions: A Rationale for Forbearance Lending'' by Ogura, Okui, and Saito. Online Appendix 1 contains the proofs of the propositions. Online Appendix 2 presents a numerical example for the theoretical model....

This paper examines the importance of buyer-supplier relationships, geography and the structure of the production network in firm performance. We develop a simple model where firms can outsource tasks and search for suppliers in different locations. Low search and outsourcing costs lead firms to...

A substantial fraction of international trade is facilitated by wholesalers, who enable manufacturers to indirectly export their products to foreign markets. Using large-scale Japanese interfirm transaction network data, this paper add empirical findings on the difference in the features between...

The COVID-19 pandemic has posed a serious threat to the survival of Japanese firms, highlighting the importance of understanding how and why firms exit. In this paper, we use a rich firm-level dataset of Japanese firms to document how firm exit patterns have evolved between 2007 and 2017. Firm...