In this paper, we investigate whether a natural selection mechanism works for firm exit. By using data of firms after a devastating earthquake, the Greeat Tohoku Earthquake, we examine the impact of firm efficiency on firm exit both inside and outside the earthquake-affected areas. We find...

In this paper, we investigate whether a natural selection works for firm exit after a massive natural disaster. By using a unique data set of more than 84,000 firms after the Great Tohoku Earthquake, we examine the impact of firm efficiency on firm bankruptcy both inside and outside the...

A firm’s choice of location is very important because it reveals the firm’s dynamics. Using a unique firm-level data set, we examine whether and how the presence of incumbent transaction partners (i.e., suppliers, customers, and lender banks) affects this choice. To this end, we focus on...

This paper investigates the effect of banks’ lending capacity on firms’ capital investment. To overcome the difficulties in identifying purely exogenous shocks to firms’ bank financing, we utilize the natural experiment provided by the Great Hanshin-Awaji (Kobe) Earthquake in 1995. Using a...

Using a unique micro dataset compiled from official real estate registries in Japan, we examine the evolution of loan-to-value (LTV) ratios for business loans over the 1975 to 2009 period, the determinants of these ratios, and the ex post performance of the borrowers. We find that the LTV ratio...

A firm's choice of location is very important because it reveals the firm's dynamics. Using a unique firm-level data set, we examine whether and how the presence of incumbent transaction partners (i.e., suppliers, customers, and lender banks) affects this choice. To this end, we focus on those...

In this paper, we investigate whether natural selection works for firm exit after a massive natural disaster. By using a unique data set of more than 84,000 firms after the Tohoku Earthquake, we examined the impact of firm efficiency on firm bankruptcy both inside and outside of the...

We study the impact of the Great Hanshin-Awaji Earthquake on firm dynamics and obtain implications for the recent Great East Japan Earthquake. By using unique micro-level data for a maximum of 90,000 firms, we examine the impact of the earthquake on firms' default, relocation, and investment...