Balance Sheet Repair and Corporate Investment in Japan

Balance Sheet Repair and Corporate Investment in Japan
ISBN-10
1498323626
ISBN-13
9781498323628
Category
Business & Economics
Pages
21
Language
English
Published
2014-08-04
Publisher
International Monetary Fund
Author
Mr.Joong Kang

Description

We trace Japanese firms’ behavior over the last decades using aggregate corporate balance sheet data. Financial health of Japanese corporate sector has improved and firms paid back significant amount of debt and rebuilt their liquidity buffers. They also expanded abroad while the pace of corporate investment moderated. Regarding the latter, model estimates on aggregate corporate investment over the post bubble period show that expectation about future profitability, in particular medium-term demand outlook, has been the major driver, implying that a successful implementation of structural reforms could have positive impact even in the near term by improving the medium-term demand outlook.

Other editions

Similar books