2003 Fiscal Year Final Research Report Summary
The Empirical Analysis of Relationship Banking in Japan : Evidence from small-and medium-sized firms data in 47 prefectures
| Project/Area Number |
13630116
|
|---|
| Research Category |
Grant-in-Aid for Scientific Research (C)
|
| Allocation Type | Single-year Grants |
|---|
| Section | 一般 |
|---|
| Research Field |
Public finance/Monetary economics
|
|---|
| Research Institution | Setsunan university |
|---|
Principal Investigator |
KANO Masaji Setsunan university, Faculty of Business Administration and Information, Associate Professor, 経営情報学部, 助教授 (50319787)
|
|---|
| Project Period (FY) |
2001 – 2003
|
| Keywords | relationship banking / main bank / small-and medium-sizes firms / regional bank / loan interest rate / hold-up problem / relationship lending / bank-firm relationship |
|---|
| Research Abstract |
The purpose of this study is to analyze empirically bank-firm relationships in Japan, using data from small-and medium-sized firms. The Japanese main bank system has played an important role in Japanese economy. Therefore, the focus is on the stability of main bank relationships in each prefecture.
First, I examine the shifts in main banks that occurred during both the period of 1980-1990(H period) and the period of 1990-2000(L period). The percentage of small-and medium-sized firms that changed main banks during the H period was 14.5%, and during the L period was 15.5%.
Second, I investigate the factors of the shifts in main banks. According to the estimated results, the capital increase of small-and medium-sized firms is significantly positive, and the age of firms is significantly negative.
Third, I examine the effect of bank-firm relationships on loan interest rates, using data from small-and medium-sized firms in top three high interest rate prefectures, and in top three low interest rate prefectures. It is found that the loan interest rate increases with the duration of the relationship, suggesting the existence of a lock-in problem.
|
