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A Panel Study of eZombie f SMEs in Japan: Identification, Borrowing and Investment Behavior

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  • Kentaro Imai

    (Graduate School of Economics, Osaka University)

Abstract

We estimated the extent to which ezombie f SMEs existed in Japan by using panel data set of firms and investigated borrowing and investment functions of ezombie f SMEs. We found that 5% `13% of SMEs are ezombie f firms. As for borrowing behavior, ezombie f firms did not succeed in reducing their loans. A fall in land value of SMEs induced an increase in borrowing of ezombie f firms or ever-greening. We also find that the profitability of investment, measured by marginal q and the increment of output, did not increase investment for the ezombie f firm, but rather ever-greening of loans increased investment in less productive and profitable projects.

Suggested Citation

  • Kentaro Imai, 2013. "A Panel Study of eZombie f SMEs in Japan: Identification, Borrowing and Investment Behavior," Discussion Papers in Economics and Business 13-16, Osaka University, Graduate School of Economics.
    • Handle: RePEc:osk:wpaper:1316
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    More about this item

    Keywords

    ezombie f firms; ever-greening; SMEs; borrowing; investment;
    All these keywords.

    JEL classification:

    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages
    • E22 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Investment; Capital; Intangible Capital; Capacity
    • E44 - Macroeconomics and Monetary Economics - - Money and Interest Rates - - - Financial Markets and the Macroeconomy

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