“Financial frictions and foreign direct investment: Evidence from Japanese microdata”

“Financial frictions and foreign direct investment: Evidence from Japanese microdata”

Horst Raff, Michael Ryan and Frank Stähler

In: Journal of International Economics, Vol. 112, pp 109 – 122

Using Japanese microdata for the period 1980 to 2000 Raff et al. find evidence for two transmission channels from financial shocks to foreign direct investment: a collateral channel, whereby changes in the value of investors’ landholdings affect their borrowing ability; and a lending channel, whereby changes in bank health affect banks’ lending ability.

“Government Credit, a Double‐Edged Sword: Evidence from the China Development Bank”

“Government Credit, a Double‐Edged Sword: Evidence from the China Development Bank”

Hong Ru

In: The Journal of Finance, Vol. 73, No. 1, pp 275 – 316

Using proprietary data from the China Development Bank (CDB), this paper examines the effects of government credit on firm activities. Tracing the effects of government credit across different levels of the supply chain, Ru finds that CDB industrial loans to state‐owned enterprises (SOEs) crowd out private firms in the same industry, but crowd in private firms in downstream industries.

“The effects of ownership change on bank performance and risk exposure: Evidence from indonesia”

“The effects of ownership change on bank performance and risk exposure: Evidence from Indonesia”

Mohamed Shaban and Gregory A. James

In: Journal of Banking & Finance, Vol. 88, pp 483 – 497

Shaban and James investigate the effects of an ownership change on the performance and exposure to risk of 60 Indonesian commercial banks over the period 2005-2012. They can show, that state-owned banks tend to be less profitable and more exposed to risk than private and/or foreign banks.