| Budget Amount *help |
¥4,680,000 (Direct Cost: ¥3,600,000、Indirect Cost: ¥1,080,000)
Fiscal Year 2016: ¥780,000 (Direct Cost: ¥600,000、Indirect Cost: ¥180,000)
Fiscal Year 2015: ¥1,430,000 (Direct Cost: ¥1,100,000、Indirect Cost: ¥330,000)
Fiscal Year 2014: ¥2,470,000 (Direct Cost: ¥1,900,000、Indirect Cost: ¥570,000)
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| Outline of Final Research Achievements |
I examine how bank-firm relationships affect macroeconomy by focusing on their termination. At first, I examine what factors determine the termination of the bank-firm relationship. The constraints on bank capital in a Japanese banking crisis increased relationship terminations, implying the presence of a capital crunch in it. Moreover, the flight-to-quality behavior of bank prevailed in relationship terminations. I also find that a longer duration of the relationship strongly decreased the probability of termination when Japan's banking system was stable, but such duration effects weakened when the system was fragile. Next, I examine the effects of bank-driven terminations of relationships on the investments of borrowing firms. I find that bank-driven terminations significantly decrease investment. Furthermore, such bank-driven terminations would amplify an economic downturn more, compared with the simple decrease in bank credits within continuing relationships.
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