Business, Management and Accounting
2 years ago

Small businesses struggle to adjust capital structure during financial crises in Japan.

Accounting and Finance
Do small businesses adjust their capital structure? Evidence from the global financial crisis in Japan
Daisuke Tsuruta

Paper Summary

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Small businesses in Japan didn't adjust their debt levels much during and after the 2008 financial crisis, even though they did before the crisis. This lack of adjustment was especially noticeable for businesses in the Emergency Credit Guarantee program. This means that when small businesses took on more debt during the crisis, they didn't make changes to their overall debt levels like they did before the crisis.