| Budget Amount *help |
¥4,680,000 (Direct Cost: ¥3,600,000、Indirect Cost: ¥1,080,000)
Fiscal Year 2016: ¥910,000 (Direct Cost: ¥700,000、Indirect Cost: ¥210,000)
Fiscal Year 2015: ¥910,000 (Direct Cost: ¥700,000、Indirect Cost: ¥210,000)
Fiscal Year 2014: ¥2,860,000 (Direct Cost: ¥2,200,000、Indirect Cost: ¥660,000)
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| Outline of Final Research Achievements |
The focus of this study is the effect of bank merger announcements on the client firms of those banks. In general, client firms of banks that announce a merger experience a significant reduction in the supply of credit from the merged main bank. Firms are unable to hedge against this fall in credit availability from the main bank and experience a significant reduction in total firm borrowing. However, the effect of bank merger announcements on client firms exhibits substantial heterogeneity. Zombie firms find it especially difficult to hedge against the fall in credit supplied by the main bank following a bank merger announcement. Thus, the zombie firms experience a precipitous drop in total firm borrowing following the announcement of a merger by their main bank. In addition, zombie firms experience significantly shorter distance-to-default and lower firm investment following a merger announcement by their main bank.
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