Appended Note 2-1 Results of Estimation of Companies' Capital Investment Behavior and Financing (Manufacturing Industries)

[Toc]  [Prev]  [Next]

1. Outline

An analysis was made on the effects of the finance situation and main banks on corporate business investment behavior by using panel data of listed companies (manufacturers).

2. Estimation method

1) Source: Development Bank of Japan, Corporate Finance Databank, Japan Economic Research Institute

2) Financial data are on a non-consolidated basis.

3) The equation of the estimation model is as follows:


The estimation was made after indexing business investment by using the business investment deflator of SNA and interest-bearing debts, cash flow, tangible fixed assets, interest cost/discount charge by using the GDP deflator.

4) A panel data analysis was made based on the above estimation model and the fixed effect model was adopted as the estimation method.

5) Corporations having no outstanding balance of long-term interest-bearing debts (long-term borrowings + corporate bonds) and those whose financial compositions are extremely bad (debt ratio of 1000% or more) were excluded from the analysis.

3. Analysis results


[Toc]  [Prev]  [Next]