Financial Research Center (HCFR)Financial Research Center (HCFR)


The 2nd Finance Workshop held

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Date: May 13th, Thurs.  17:15-18:45

Speaker: Mr Yoshikatsu Shinozawa  (Hitotsubashi University)

Co-author: Kazuo Yamada and Yong Kil Ahn

Title: Corporate Debt Mix and Long-term Firm Growth in Japan



This paper examines how firms change debt financing channels in line with the development of financial markets.
In this aim, a data set of Japanese listed firms from 1965 (with more than 10% of annual GDP growth) to 2015
(almost 0% GDP growth) is used. We find a long-term change in the debt mix from internal debt financing (e.g.,
trade credits) to external debt financing (e.g., public bonds). Furthermore, we document that the firm growth rate
is positively related to bond financing and negatively associated with trade credits. These associations are not
found with regard to interlocking business relationships with keiretsu.

Keywords: Debt mix; Growth; Performance; Emerging market
JEL classification: G30, G32


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