Choose an application

• Reference Manager
• EndNote
• RefWorks (Direct export to RefWorks)

Choose an application

• Reference Manager
• EndNote
• RefWorks (Direct export to RefWorks)

This is the first book to report the details of the current status of interfirm relationships in Japan. Based on a unique data set of firms, the authors describe the characteristics of interfirm transactions in a manner unprecedented in the literature. Special emphasis is placed on the nature of payment/collection between firms. Payment for interfirm transactions is usually made on account, or by payment after delivery, rather than by immediate payment. Thus, most interfirm transactions are accompanied by a provision of credit (i.e., lending/borrowing) from a seller to a buyer, referred to as trade credit. Although trade credit is used all around the world and accounts for a large portion of firms’ balance sheets, researchers, lacking detailed data, have long encountered serious difficulty in clarifying how and why firms use trade credit. In this work the authors use a huge, unique data set of about 380,000 firms in Japan during the 2007–2010 period. To grasp the entirety of this enormous data set, which is tantamount to a picture of all firms currently operating in Japan, this brief summarizes descriptive statistics and conducts univariate analyses of the data. Also provided is the legal background of trade credit practice in Japan from the “law and economics” perspective. In this manner, the book furnishes vital information that can be used as a reference for future theoretical and empirical analyses of trade credit and interfirm relationships.

Economics/Management Science. --- Finance/Investment/Banking. --- Business Strategy/Leadership. --- Production/Logistics/Supply Chain Management. --- Economics. --- Economie politique --- Business networks -- Japan -- Databases. --- Commercial credit -- Japan. --- Corporations -- Finance. --- Economics -- Japan. --- Business networks --- Commercial credit --- Finance --- Business & Economics --- Banking --- Investment & Speculation --- Finance - General --- Databases --- Business enterprises --- Finance. --- Leadership. --- Production management. --- Finance, general. --- Operations Management. --- Manufacturing management --- Industrial management --- Ability --- Command of troops --- Followership --- Funding --- Funds --- Economics --- Currency question --- Japan. --- al-Yābān --- Giappone --- Government of Japan --- Iapōnia --- I͡Aponii͡ --- Japam --- Japani --- Japão --- Japon --- Japonia --- Japonsko --- Japonya --- Jih-pen --- Mư̄ang Yīpun --- Nihon --- Nihonkoku --- Nippon --- Nippon-koku --- Nipponkoku --- Prathēt Yīpun --- Riben --- State of Japan --- Yābān --- Yapan --- Yīpun --- Zhāpān

Choose an application

• Reference Manager
• EndNote
• RefWorks (Direct export to RefWorks)

Current theoretical and empirical research suggests that small banks have a comparative advantage in processing soft information and delivering relationship lending. The most comprehensive analysis of this view found using U.S. data that smaller SMEs borrow from smaller banks and smaller banks have stronger relationships with their borrowers (Berger, Miller, Petersen, Rajan, and Stein 2005) (BMPRS). We employ essentially the same methodology as BMPRS on a unique Japanese data set and obtained findings that are quite interesting from an international comparison point of view. We found like BMPRS that larger firms tend to borrow from larger banks. However, unlike BMPRS we did not find that this was because larger firms are more transparent. Together these results imply that large banks do not necessarily have a comparative advantage in extending transactions-based lending. We also found like BMPRS that smaller banks have strong relationships with their borrowers. However, we find that banking relationships in the U.S. and Japan are strong in somewhat different dimensions. Our paper clarifies these and other interesting similarities and differences between the U.S. and Japan.