Nber Working Paper Series Bank Ties and Bond Market Access: Evidence on Investment-cash Flow Sensitivity in Japan

Abstract

The banking literature has established that banks can alleviate information asymmetries between lenders and borrowers, while the Q literature has used cash flow sensitivity analysis to test whether financing constraints hinder investment. This paper investigates whether bank ties in Japan were costly for mature and healthy firms in the 1980's and 1990's… (More)

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