How much do tax credits affect firms R&D activities? What are the mechanisms? Few empirical studies directly examine the effect of tax credit policies on firms R&D investments and the importance of financial constraints on the policy effects on R&D. This paper examines the effect of the Japanese...

To what extent does a tax credit affect firms ́R&D activity? What are the mechanisms? This paper examines the effect of R&D tax credits on firms ́R&D expenditure by exploiting the variation across firms in the changes in the eligible tax credit rate between 2000 and 2003. Estimating the...

This paper examines the ramification of government capital injections into financially distressed banks during the 1997 Japanese banking crisis. By leveraging a unique dataset merging firm-level financial statements and bank balance sheets, the study aims to examine whether the capital...