How Do Small Businesses Finance Their Growth Opportunities?—The Case of Recovery from the Lost Decade in Japan

@inproceedings{Tsuruta2012HowDS,
  title={How Do Small Businesses Finance Their Growth Opportunities?—The Case of Recovery from the Lost Decade in Japan},
  author={Daisuke Tsuruta},
  year={2012}
}
We investigate the financial resources used by small businesses in Japan during the period of recovery from a severe recession. Unlike large listed firms, small businesses cannot easily issue commercial debt or equity. Therefore, small businesses largely depend on trade credit and bank loans. Many previous studies argue that bank loans are cheaper than trade credit; so many firms (particularly unconstrained firms) use bank loans, especially in financially developed economies. However, the… CONTINUE READING

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