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SME Policy, Financial Structure and Firm Growth: Evidence From Japan

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  • Yuji Honjo

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  • Nobuyuki Harada
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    Abstract

    This paper investigates the effects of public policy and financial structure on the growth of small and medium enterprises (SMEs). Using a panel data set on SMEs in the Japanese manufacturing industry, we examine whether or not the SME Creative Business Promotion Law (CBPL) and financial structure affect firm growth. It is found that SMEs approved by prefectural governors under this law tend to increase assets. Further, we provide evidence that the CBPL and cash flow have an impact on the growth of younger SMEs. Copyright Springer 2006

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    File URL: http://hdl.handle.net/10.1007/s11187-005-6703-0
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    Bibliographic Info

    Article provided by Springer in its journal Small Business Economics.

    Volume (Year): 27 (2006)
    Issue (Month): 4 (December)
    Pages: 289-300

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    Handle: RePEc:kap:sbusec:v:27:y:2006:i:4:p:289-300

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    Web page: http://www.springerlink.com/link.asp?id=100338

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    Cited by:
    1. Molinari, Massimo, 2013. "Joint analysis of the non-linear debt–growth nexus and cash-flow sensitivity: New evidence from Italy," Structural Change and Economic Dynamics, Elsevier, vol. 24(C), pages 34-44.
    2. Guariglia, Alessandra & Liu, Xiaoxuan & Song, Lina, 2008. "Internal Finance and Growth: Microeconometric Evidence on Chinese Firms," IZA Discussion Papers 3808, Institute for the Study of Labor (IZA).
    3. Miroslav Mateev & Yanko Anastasov, 2010. "Determinants of small and medium sized fast growing enterprises in central and eastern Europe: a panel data analysis," Financial Theory and Practice, Institute of Public Finance, vol. 34(3), pages 269-295.

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