Financial constraints of firms and bank characteristics
Wataru Nozawa and
Economic Analysis and Policy, 2019, vol. 64, issue C, 302-316
There are a variety of institutional lenders in capital markets, such as banks or credit unions. Using the panel data of Japanese firms, we evaluate banks and credit unions based on their borrowers’ cash-flow sensitivity of investments, which is a measure of borrowers’ financial constraints. Our findings suggest that credit unions are doing better than banks in loosening the financial constraints of small and, in particular, middle-aged firms. We then discuss some potentially socially desirable policy interventions. We further contribute to the literature on firms’ financial constraints by estimating investment-cash-flow sensitivity using a sample that has not been analyzed.
References: View references in EconPapers View complete reference list from CitEc
Citations: Track citations by RSS feed
Downloads: (external link)
Full text for ScienceDirect subscribers only
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:eee:ecanpo:v:64:y:2019:i:c:p:302-316
Access Statistics for this article
Economic Analysis and Policy is currently edited by Clevo Wilson
More articles in Economic Analysis and Policy from Elsevier
Bibliographic data for series maintained by Dana Niculescu ().