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Based on a matched sample of Japanese small firms and main banks, we investigate bank-firm relationships in the early 2000s. We obtain some remarkable new findings. First, small firms have multiple bank relationships even though they have their main bank relations. Second, firms tied with financially weak main banks increase their number of bank relations(More)
This paper investigates the redistributional view of trade credit from the demand side, based on a unique micro data of Japanese small firms where information on transactions of intermediate goods between firms of different size is available. The redistributional hypothesis is tested in two steps. In the first step we examine the relationship of customer(More)
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