【主讲】Michio Suzuki (University of Tokyo)
【主题】The Effect of Bank Recapitalization Policy on Corporate Investment: Evidence from a Banking Crisis in Japan
【时间】2015年10月26日 (周一) 15：30-17：00
【地点】上海财经大学经济学院楼801室
【语言】英文
【摘要】In this paper, we quantitatively examine the effect of government capital injectionsinto financially troubled banks on the level of corporate investment during the Japanesebanking crisis. To this end, we develop a dynamic structural model of firm investmentwhich incorporate endogenous borrowing constraints, where the real interest rates endogenouslydepend on firm's state variables which include productivity, collateral, debt,and the Basel I capital adequacy ratio of its main bank. In the model, lowering themain bank's capital adequacy ratio leads to a tighter borrowing constraint and lowerfirm's investment. Combining the corporate finance data from the Development Bankof Japan with the Nikkei NEEDS's bank balance sheet data, we estimate the structuralmodel and conduct counter-factual policy experiments to quantitatively assess the effecton investment of capital injection that took place in March 1998 and 1999 in Japan.The results of counterfactual experiments indicate that the total amount of aggregateinvestment in 1998 would have been lower by 1.84 percent if there had been no capitalinjection in 1998 while it would have been higher by 8.32 percent if the 1999 capital injection(7:5 trillion yen) had taken place in 1998 on the top of the 1998 capital injection(1:8 trillion yen).
