Working Papers

• The Long-term Effects of Bank Bailouts on Corporate Financing Policies [August, 2023], revise and resubmit at Journal of Banking and Finance.

abstract: This paper examines the long-term effects of bank bailouts on the financing policies of borrower firms, using episodes of Japanese bank bailouts in the 1990s as a case study. I find that bank bailouts exert a significant impact on the financial strategies of borrower firms, leading to a persistent increase in the long-term debt-to-asset ratio and a sustained decrease in the cash-to-asset ratio. When analyzing non-zombie and zombie firms separately, it is observed that these structural changes in capital structure are more conspicuous among zombie borrower firms, which exhibit an enhanced bank dependency post-bailouts. These findings underscore the potential unintended consequences of bank bailouts, suggesting they may inadvertently impede the recovery of zombie firms in the long term.

Publications

• Aggregate Productivity Slowdown and Share of Temporary Workers, Japanese Economic Review, November 2023.

• Public Investment Multipliers: Evidence from Stock Returns of a Road Pavement Industry in Japan, Journal of Economic Dynamics and Control, Vol 133, December 2021, 104247 (WP version)

• Radial Basis Functions Neural Networks for Nonlinear Time Series Analysis and Time-Varying Effects of Supply Shocks, Journal of Macroeconomics, Vol 64, June 2020, 103210 (WP version)

• Sentiment toward Trading Partners and International Trade, (joint with E. Feasel), Eastern Economic Journal, Vol. 39, Issue 3, pp. 309-327, 2013

Other Writing

• Market Signals and the Cost of Credit Risk Protection: An Analysis of CDS Settlement Auctions with L. Zanforlin, IMF Working Paper 14/239, December 2014