ESRI Discussion Paper Series No.273
Bank Efficiency and Client Firms' Productivity

Daisuke Miyakawa
Associate Senior Economist, Research Institute of Capital Formation, Development Bank of Japan
Tomohiko Inui
Senior Research Fellow, Economic and Social Research Institute, Cabinet Office
Keishi Shoji
Researcher, Research Office on Budget, Research Bureau, House of Representatives

Abstract

This paper studies the quantitative impact of the efficiency of lender banks on their client firms' total factor productivity. By using the panel data for bank and firm characteristics including the efficiency of banks, we empirically establish the positive correlation between the growth and the level of client firms' TFP, which generically reflect firm's own characteristics, and the efficiency of the lender bank with high loan share. This implies it is necessary to expand the discussion for the determinants of firm performance to the characteristics of the parties having relationships with them.


Structure of the whole text(PDF-Format 1 File)

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  2. Abstract
  3. page2
    1. Introduction
  4. page4
    2. Related literature
  5. page6
    3. Bank Output
  6. page10
    4. Data
    1. page10
      4.1. Bank data
    2. page12
      4.2. Firm data
    3. page15
      4.3. Matching data
  7. page15
    5. Empirical Analysis
    1. page16
      5.1. Theoretical underpinnings and hypothesis formulation
    2. page19
      5.2. Estimation results
    3. page21
      5.3. Several omitted issues
  8. page22
    6. Concluding Remarks
  9. page24
    Table and Figure
    1. page24
      Figure-1
    2. page25
      Figure-2
    3. page26
      Table-1
    4. page27
      Table-2
    5. page28
      Table-3
    6. page29
      Table-4
    7. page30
      Table-5
  10. page31
    References
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