Banking crisis and productivity of borrowing firms: Evidence from Japan

Fumio Akiyoshi, Keiichiro Kobayashi

Research output: Contribution to journalArticle

6 Citations (Scopus)

Abstract

We investigate the effects of bank distress on the productivity of borrowing firms by using data on listed companies in the Japanese manufacturing industry during the 1990s. We find that deterioration in the financial health of banks, which is measured by a decline in the capital-asset ratio, decreased the productivity of their borrowers during the period of the severe financial crisis (FY1997-1998). Our finding empirically confirms the theoretical view that an increase in financial friction negatively affects the productivity of the corporate sector.

Original languageEnglish
Pages (from-to)141-150
Number of pages10
JournalJapan and the World Economy
Volume22
Issue number3
DOIs
Publication statusPublished - 2010 Aug
Externally publishedYes

Fingerprint

banking
productivity
Japan
firm
bank
capital assets
evidence
manufacturing industry
financial crisis
health
Productivity
Borrowing
Banking crisis
Financial crisis
Financial frictions
Financial health
Assets
Distress
Manufacturing industries
Listed companies

Keywords

  • Banking crisis
  • Credit crunch
  • Total factor productivity

ASJC Scopus subject areas

  • Economics and Econometrics
  • Finance
  • Political Science and International Relations

Cite this

Banking crisis and productivity of borrowing firms : Evidence from Japan. / Akiyoshi, Fumio; Kobayashi, Keiichiro.

In: Japan and the World Economy, Vol. 22, No. 3, 08.2010, p. 141-150.

Research output: Contribution to journalArticle

Akiyoshi, Fumio ; Kobayashi, Keiichiro. / Banking crisis and productivity of borrowing firms : Evidence from Japan. In: Japan and the World Economy. 2010 ; Vol. 22, No. 3. pp. 141-150.
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