| Budget Amount *help |
¥4,550,000 (Direct Cost: ¥3,500,000、Indirect Cost: ¥1,050,000)
Fiscal Year 2016: ¥650,000 (Direct Cost: ¥500,000、Indirect Cost: ¥150,000)
Fiscal Year 2015: ¥780,000 (Direct Cost: ¥600,000、Indirect Cost: ¥180,000)
Fiscal Year 2014: ¥3,120,000 (Direct Cost: ¥2,400,000、Indirect Cost: ¥720,000)
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| Outline of Final Research Achievements |
We first investigate the effect of bank concentration and misallocation of credit on firm start-up and exit. We find that bank concentration negatively affects start-up and exit rates in informational opaque industries. We also find the effect of bank concentration on start-up and exit rates is weakened by the presence of financially unhealthy firms. Firm entry in informational opaque industries is encouraged in a market where government capital injected banks operate, offsetting the negative effects of bank concentration.
Next, we investigate how firm-bank relationships affect corporate cash-holdings. We find that emerging firms (smaller firms) with concentrated bank loan structures and long-term main bank relationships hold lower (higher) level of cash. Our findings suggest that concentrated bank relationships affect cash holdings driven by precautionary motives, but such relationships entail hold-up problems among smaller firms without alternative sources of liquidity.
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