Listing and Financial Constraints

Kenichi Ueda, Akira Ishide and Yasuo Goto
Additional contact information
Akira Ishide: The University of Tokyo
Yasuo Goto: Seijo University and RIETI

No CARF-F-429, CARF F-Series from Center for Advanced Research in Finance, Faculty of Economics, The University of Tokyo

Abstract: We confirm, with a twist, that listing to a stock exchange can mitigate financial constraints of firms, using Japanese firm-level data over 20 years, 1995-2014, controlling for main-bank relationship and majority owner influence. Compared to a similar unlisted firm, a listed firm has a lower marginal product of capital on average and more new borrowings in recessions. Theoretically, we argue that these are key pieces of evidence to indicate less tight financial constraints for the listed firms than the unlisted. However, the listed firms do not borrow more on average over time. They rather maintain the lower leverage so that they can mitigate the borrowing constraints. We also find that the listed firms do not face lower interest rates.

Pages: 35 pages
Date: 2018-02
New Economics Papers: this item is included in nep-bec and nep-sbm
References: Add references at CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
https://www.carf.e.u-tokyo.ac.jp/old/pdf/workingpaper/fseries/F429.pdf (application/pdf)

Related works:
Journal Article: Listing and financial constraints (2019)
Working Paper: Listing and Financial Constraints (2017)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:cfi:fseres:cf429

Access Statistics for this paper

More papers in CARF F-Series from Center for Advanced Research in Finance, Faculty of Economics, The University of Tokyo Contact information at EDIRC.
Bibliographic data for series maintained by ().