Inter-firm transaction network and bank lending

2016 Fiscal Year Final Research Report

• Project/Area Number: 26590051
• Research Category: Grant-in-Aid for Challenging Exploratory Research
• Allocation Type: Multi-year Fund
• Research Field: Money/ Finance
• Research Institution: Waseda University
• Principal Investigator: Ogura Yoshiaki 早稲田大学, 政治経済学術院, 教授 (70423043)
• Project Period (FY): 2014-04-01 – 2017-03-31
• Keywords: 企業間取引 / ネットワーク / 影響力指数 / 追い貸し

Outline of Final Research Achievements

This study demonstrates theoretically and empirically that a firm with a higher influence as a procurer in a supply network is more likely to obtain a rescue loan at a lower interest rate when it is under a financial distress. A bank will evaluate not only the standalone performance of the firm but the propagation effect through the supply network. 　Consequently, the lending cost is relatively smaller for those with a higher influence coefficient in a financial distress. This effect is larger for regional banks that often have a stronger market power in the regional financial market.

Free Research Field

金融・ファイナンス