Development Bank of Japan
Research Report
No. 29Corporate Financing Trends in Recent Years:
Fund Shortages and Repayment Burden

August 2002

Economic and Industrial Research Department
Development Bank of Japan

Contents
Summary ............................................................................................................................................... iii
Introduction ............................................................................................................................................1
I

Corporate Balance Sheet Conditions from a Macro Perspective...............................................2
1. Corporate Sector Balance Sheet as Seen in SNA Statistics ......................................................2
2. Background of Changes in the Corporate Sector Balance Sheet ..............................................3

II

Fund Shortages in the Corporate Sector in the 1990s.................................................................5
1. Funding Conditions in the Corporate Sector in the 1990s- From Fund Shortages to Fund Surpluses - .............................................................................5
2. Corporate Sector Money Flow in the 1990s- Restrained Capital Investments and Reduced Financial Debt -..............................................7
3. Transitions in Fund Shortages as Indicated in Corporate Financial Data
- Inter-Industry and Inter-Company Disparities - .....................................................................9

III Corporate Sector Repayment Burden ........................................................................................11
1. Cash Flow after Repayment and Repayment Burden .............................................................11
2. Increase in the Repayment Burden of Fixed Liabilities..........................................................13
3. Balance between Cash Flow and Repayment Burden by Individual Company......................15
4. From the Perspective of Cash Flow Trends in Recent Years..................................................17
Conclusion.............................................................................................................................................18
References .............................................................................................................................................19

Development Bank of Japan Research Report/ No. 29

iCorporate Financing Trends in Recent Years:
Fund Shortages and Repayment Burden
Summary
1. In the 1990s, the corporate sector shiftedfrom insufficient funds to a surplus and, during
the latter half, in particular, the repayment ofliabilities was promoted and balance sheet adjustment progressed; however, how much has theburden of repayment of fixed liabilities improved? In this report, while summarizing corporate fund procurement during the 1990s, I discuss
the corporate fund shortages/surpluses and theburden for the repayment of fixed liabilities.
2. Transitions in fund shortages in the nonfinancial corporate sector indicate that the scaleof fund shortages gradually narrowed throughout
the 1990s and that, by FY 1999, there was a surplus of 4% against GDP. While the contributionof large corporations to this change is great, thesame tendency is also noted among small andmedium-scale companies.
In order to pursue the background of thissurplus of funds, the money flow among private
sector non-financial companies in the1990s
shows that, while management aspects overall
did not fluctuate greatly, in terms of procurement,
loans, which account for the majority of procurement during the period of 1990-96 increasedby ¥110 trillion; however, during the three subsequent years, internal reserves were allocated to
the reduction of financial liabilities and droppedby ¥20 trillion. One possible way of viewing thisis that cash flow during this time rather was
sluggish and, rather than saying that there wasabundance in funding, capital investments wererestrained and the reduction of liabilities waspromoted.
A comparison of the funding shortfall (net)by industry in FY 1991 and FY 1998 shows that
there were fund shortages shared by many industries but that industry-specific disparities
become apparent in FY 1998. Estimating thefunding shortfall in individual industries andcomparing gross totals by industry shows thatsurpluses and shortfalls are evident even within
industries. These disparities are especially conspicuous in non-manufacturing industries.
3. Funding shortfalls correspond to net financial balance and are important in observing thechanges in the balance of financial assets andliabilities. On the other hand, when considering
investments and other corporate decisions, since
repayments and/or redemptions are frequently
determined by contract at the time of past procurements, the degree of room that there is becomes important in the cash flow after repayment (i.e., cash flow – repayments and/or redemptions), which is cash with a high degree of
freedom that is readily available for investment
purposes. In addition, when repayment becomesdifficult, when carrying out additional financing,etc., to avoid being short on cash, cash shortageis resolved for the time being and do not come tothe surface. In order to grasp the actual circumstances, rather than fund shortages, the level ofthe repayment burden (i.e., repayments and redemptions/cash flow) becomes the focus of attention.
4. Examining the repayment burden of fixedliabilities, the ratio of the amount of repayments
and redemptions to cash flow (i.e., repayment
burden) shows that cash flow dropped throughout the 1990s due to a drop in profits, resulting
in a higher ratio and a heavier burden. Therefore,
there was pressure on the cash flow after repayment and it became in size. An analysis of the
primary factors in the increase in the ratio showsthat, because the repayment term remained level
and the number of year of redemption increased,
the repayment burden increased.
In order to investigate the conditions of internal funds that are readily available for individual corporations to use, I estimated cash flow
after repayment of listed publicly-traded companies based on individual companies and observed
the gross total by industry. The amount in FY

Development Bank of Japan Research Report/ No. 29

iii

1991 indicates that, in manufacturing industries,
positive and negative amounts virtually offset
one another and cash flow and repayments, etc.,
are essentially balanced, while there were conspicuous industries with large negative amounts
in non-manufacturing industries. Nevertheless,when viewing by the number of companies in thesame year, there was no great disparity between
manufacturing and non-manufacturing industries.
Based on this, it becomes clear that, in industries
with large negative amounts among nonmanufacturing industries, there is a combinationof some companies with extremely heavy repayment burden and others in which it is not soheavy.

showing a reduction in the balance of liabilities.
Nevertheless, within the context of prolonged
decline in cash flows, in addition to an increasein the repayment burden of fixed liabilities, disparities became evident in the degree of expansion between industries and between companies.
The increase in the repayment burden put pressure on self-financed funds that are readily available for investments. In light of these circumstances, there is probably still a need in a numberof industries for further balance sheet adjustments. In addition, in individual cases, if adjustment is difficult on their own, it is perhaps also
necessary for them to adopt drastic measures
such as enhancing profitability through company
restructuring.

5. As indicated above, in the latter half of the
1990s, the corporate sector shifted from funding
shortfalls to surpluses and, in the corporate sector
overall, balance sheet adjustments progressed[Koichi Ando (e-mail: koando@dbj.go.jp)]

iv

Development Bank of Japan Research Report/ No. 29

Introduction
These was a tone of constraint in the attitude ofbanks toward lending during the 1990s and it issaid that, as the demand for funds by companies
was also restrained, adjustments of the level of
liabilities, which had been excessive, also moved
forward, while, on the other hand, the writeoff of
non-performing debts, which is referred to as anaftereffect of the bubble economy, is still in progress.
In the 1990s, the corporate sector shiftedfrom fund shortages to fund surpluses and, especially during the latter half, the repayment ofliabilities progressed and balance sheet adjustments were also promoted. To what degree,
though, has the repayment burden of fixed liabilities been alleviated? In this report, I present an
overview of corporate funding procurement
during the 1990s based on macro data and examine corporate fund shortages/surpluses and therepayment burden of fixed liabilities based on
corporate financial data.
The characteristic feature of the analyses inthis report is the point that economic analyses are
conducted while considering data from the perspective of company analyses and screening.
First of all, in order to consider the backgroundof fund shortages as the outcome, I will attempt
to evaluate company strength focusing on cash
flow after repayment. The importance of cash
flow has become fully understood in recent
years; it is also necessary, however, to be awarethat the funding that companies are free to use islimited by their past record. This is also a discussion of the effect not only on funding demand in
net terms but also on gross funding demand.
Secondly, attention is given particularly to

repayment burden. Balance sheet adjustments areoften discussed in terms of the interest burden;
however, the repayment burden is also a frequentfocus of attention as another important factor.
Rather, in actuality, these are cases in which thereason why companies reach an impasse directly
is obstacles that appear in the repayment burden
rather than the heavy weight of the interest burden and there is sufficient reason to say that thispoint of view has been lacking in the discussion
to date. This perspective is undoubtedly especially important in an age in which greater certainty in repayments and loans is screened most
severely.
The reason why there have been few analyses based on this point of view is probably due
to the limited availability of concrete data regarding repayment amounts, in particular; however, in this report, I proceeded to confirm repayment amounts by tabulating corporate financial data available for use at the Development
Bank of Japan.
The contents of this report are as indicatedbelow. In Chapter I, I give an overview of thegeneral trends in the balance sheet conditions of
the corporate sector based on the National Accounts. In Chapter II, I confirm the cash flow
surrounding companies based on macro money
flow accounts, while estimating funding shortfalls and surpluses by industry and by company
based on micro corporate financial data and examine corporate sector conditions. In Chapter III,I confirm the level of cash flow after repayment
and the repayment burden, which is the marginof funding flexibility that companies have, using
corporate financial data and examine the underlying factors.

Development Bank of Japan Research Report/ No. 29

1

I Corporate Balance Sheet Conditions from a Macro Perspective
1.

Corporate Sector Balance Sheet as Seenin SNA Statistics

Let us confirm first of all an overall image of thebalance sheets of the non-financial corporate
sector based on SNA statistics (Table 1-1). Since
the value of each item of both assets and liabilities in SNA statistics is basically market value, it
is possible to know the market price at any given
time.1
The gross assets of the overall non-financial
industries in Japan was ¥1,805 trillion as of theend of 1999, consisting of ¥1,055 trillion (58%)
in real assets and ¥751 trillion (46%) in financial

assets. 60% of the real assets were fixed assets
and inventory and the other 40% was land. Liabilities were ¥1,526 trillion, consisting of ¥524
trillion in stock2 and ¥573 trillion in loans. Net
assets were about ¥230 trillion.
The movements3 in this balance sheet
throughout the 1990s show that fixed assets increased by ¥120 trillion while land holdings
dropped ¥230 trillion due to the decline in land
prices and other reasons and financial assets also
declined by ¥55 trillion. Therefore, gross assets
dropped by ¥157 trillion.
In regard to procurements, the primary
move was an increase of ¥100 trillion in stockand “nonstock liabilities” (i.e., so-called current
liabilities or fixed assets) overall remained
steady.

Table 1-1 Transitions in Non-Financial Corporate Sector Balance Sheet
Item
Real assets

End ‘90 End ‘91 End ‘92 End ‘93 End ‘94 End ‘95 End ‘96 End ‘97 End ‘98 End ‘99 ’91 – ‘99
1,157

1,151

1,130

1,130

1,120

1,109

1,112

1,133

1,080

1,055

-102

Fixed assets

453

496

522

536

538

544

551

576

575

573

120

Land

632

581

534

524

513

495

489

481

433

412

-220

Inventory

71

72

72

70

68

71

72

75

72

69

-1

Other

1

1

1

1

1

1

1

1

1

1

0

Financial assets

806

803

723

733

750

755

731

723

665

751

-55

Incl. stock

178

172

121

128

154

150

133

111

87

160

-18

Total

1,963

1,954

1,853

1,864

1,870

1,864

1,843

1,855

1,745

1,805

-157

Financial liabilities

1,428

1,457

1,345

1,372

1,462

1,480

1,465

1,430

1,308

1,526

99

424

411

299

320

397

398

379

339

290

524

100

Nonstock

1,003

1,047

1,046

1,052

1,065

1,082

1,086

1,091

1,018

1,002

-1

Loans

556

589

600

602

608

617

618

628

596

573

17

Corporate bonds, etc.

136

142

151

156

163

174

185

192

180

181

45

Other

311

317

296

294

294

291

283

271

241

247

-64

Net assets

535

497

508

491

408

384

378

425

437

279

-256

Stock

Source: Prepared based on Cabinet Office, National Accounts

2

1

It is basically book value in the case of corporate accounting and a disparity arises with market value. Therefore,
it is not possible to know the market value at any given time
unless adjustments are made for unrealized gains and losses.
2

Development Bank of Japan Research Report/ No. 29

Stock is considered to be one form of liabilities in SNA
statistics and the net value is the company’s own value thatis not embodied in the value of the stock. Based on the
viewpoint of the fictional theory of the corporation, thisvalue is essentially the possession of the shareholder; however, it has a strong character of wealth owned by the corporation itself.
3
In more precise terms, the 9-year period from 1991
through 1999, when consistent data based on the new standard of 93SNA existed.

Financial liabilities, therefore, increased by ¥99
trillion.
Due to these movements on the asset andliability sides, net assets decreased by ¥256 trillion from 1990 through 1999 to about half of theoriginal ¥535 trillion.
2.

Background of Changes in the Corporate
Sector Balance Sheet

Next, we will observe what happens whenchanges in the corporate sector balance sheet aredecomposed to changes in funding management
and procurement behavior based on company
transactions4 and assets value fluctuations, etc.
Fund management based on transactions(Table 1-2) indicates that there were few investments in land in the overall investments in real
assets that increased to ¥715 trillion throughout
the 1990s and that investments in fixed assets
accounted for the majority, ¥710 trillion. Though
investments continued at a level that exceeded
depreciation, the depreciation amount continued

to increase throughout the 1990s while investments tended toward restraint, hence bringing thetwo amounts close together. Investments in financial assets were negative during the 1990s
and the negative amount was especially large in
1992-93 after the collapse of the bubble economy and more recently in 1997-98.
In regard to funding procurement, there wasan increase of ¥69 trillion in financial liabilities,of which stock increased by ¥13 trillion and nonstock liabilities increased by ¥56 trillion. However, as indicated below, the latter amount of ¥56
trillion matches precisely with ¥56 trillion in badloan writeoffs.
Focusing on movements during the period
1997-99, while ¥41 trillion in financial assets
were disposed, ¥64 trillion in financial liabilities
were reduced. This coupled with the ¥56 trillion
in bad loan writeoffs caused the balance of nonstock liabilities to ultimately remain steady eventhough the economy continued to expand inscale.

Table 1-2 Funding Management and Procurement in the Non-Financial Corporate Sector(based on transactions)(unit: ¥tril.)
Item
Investments in real assets

1991

1992

1993

1994

1995

1996

1997

1998

1999

1997-99
subtotal

1991-99
subtotal

96.5

87.0

74.4

69.0

79.2

75.3

86.1

77.0

70.4

234

715

Incl. fixed asset formation

89.5

84.2

76.2

71.6

73.5

75.6

84.2

80.3

75.3

240

710

Increase in land

3.8

1.7

-1.8

-1.8

3.5

-3.3

-0.7

-3.3

-3.7

-8

-6

Increase in inventory

3.2

1.1

0.1

-0.8

2.2

2.9

2.7

0.0

-1.2

1

10

8.8

-24.0

-12.6

1.3

8.1

13.3

-22.8

-24.9

6.9

-41

-46

105.3

63.1

61.9

70.3

87.2

88.5

63.4

52.1

77.3

193

669

Investment in financial assets
Total
Change in net assets

11.7

3.2

-0.3

2.8

6.5

9.5

23.8

37.7

21.5

83

116

Depreciation costs

46.8

50.2

51.4

52.2

53.4

55.9

57.1

58.6

57.7

173

483

Financial liabilities

46.9

9.7

10.7

15.3

27.3

23.1

-17.5

-44.1

-2.0

-64

69

Stock

3.1

2.9

2.9

4.5

2.3

3.4

-16.2

3.7

6.8

-6

13

Nonstock

43.8

6.8

7.8

10.8

25.0

19.6

-1.3

-47.8

-8.7

-58

56

58.6

12.9

10.5

18.1

33.9

32.6

6.2

-6.5

19.5

19

186

(Reference) Contribution togross asset increase

Source: Prepared based on Cabinet Office, National Accounts

4“Based on transactions” means based on economictransactions actually carried out by companies.

Development Bank of Japan Research Report/ No. 29

3Looking at changes due to asset value variability, etc. (Table 1-3), a broad capital loss occurred during the 1990s due to asset value variability, etc., while bad loan writeoffs also occurred. In regard to the capital loss, overall theloss in stocks and other financial assets was not
great, primarily a drop of ¥215 trillion in land
due to the drop in land values. The writeoff ofbad loans proceeded from the mid-1990s anddecreased by ¥56 trillion overall from 1991
through 1999. Net assets increased by ¥116 trillion based on transactions throughout the 1990s
but decreased by ¥372 trillion through valuation
loss and so forth.
Focusing on nonstock liabilities, in particular, the overall positive amount during the 1990s
was about ¥110 trillion based on transactions but
remained steady at a level of about ¥1,000 trillion at the end of the 1990s due to the reduction
in liabilities of ¥58 trillion and writeoff of badloans of ¥56 trillion during the latter half of the
1990s. It could be said that, within the context ofa tentative expansion in the scale of the economy,
success was achieved in restraining the level of
liabilities.
Nevertheless, while gross assets dropped byalmost ¥160 trillion, net assets also decreased,
and it will be more difficult hereafter to continue
sustaining the level of liabilities indicated above.
With the drop in land values, in particular, aside
from whether or not this will emerge in accounting, in real terms, valuation losses continued to occur and, during that time, company
profits, including capital loss, were considerably
constrained. If land values happen to stop falling
sometime in the not too distant future, it will
become possible to lighten this burden; however,
the asset value level, on which liability repayment is based, continues to drop5 with a burdenthat is heavier than ever.

Table 1-3 Valuation Loss and Bad Loan Writeoffs, etc. (adjustment account)(unit: ¥tril.)
ItemReal assets

1991

1992

1993

1994

1995

1996

1997

1998

1999

Total

-55.8

-57.8

-22.4

-27.2

-36.1

-16.8

-8.3

-71.4

-37.6

-334

Incl. land

-54.5

-49.0

-8.5

-9.4

-21.5

-2.3

-7.2

-45.3

-17.2

-215

Financial assets

-11.6

-56.0

22.5

15.4

-3.2

-37.1

14.4

-32.5

78.5

-9

Contribution to gross assets-67.4-113.8

0.2

-11.8

-39.3

-54.0

6.0

-103.941.0-343

Financial liabilities-17.2-121.6

16.4

74.2

-9.0

-38.1

-17.4

-78.2

220.4

29

Incl. stock value variability-16.7-114.6

18.6

71.9

-1.2

-22.1

-23.3

-53.1

227.6

87

Incl. bad loan writeoffs ( - )

-0.9

-1.5

-2.8

-4.4

-9.1

-7.4

-7.6

-13.8

-8.7

-56

-50.1

7.8

-16.3

-86.0

-30.3

-15.8

23.4

-25.7

-179.5-372

Contribution to net assets

Source: Prepared based on Cabinet Office, National Accounts

5
Since the profit rate is also dropping, the level of profit
is falling. Refer to the Japan Development Bank (2000).

4Development Bank of Japan Research Report/ No. 29

II Fund Shortages in the Corporate Sector in the 1990s
1. Funding Conditions in the Corporate
Sector in the 1990s– From Fund Shortages to Fund Surpluses –Until the 1980s and especially the latter half
known as the bubble era, there was a strong demand for capital backed by vigorous capital investments and, even given the margin of flexibility for the cash flow, there was a great expansion in fund shortages.6 In this section, I will
confirm how this situation changed in the 1990s
as well as the circumstances surrounding corporate fund procurement and cash flow.
Transitions in fund shortages in the nonfinancial corporate sector viewed in terms ofmoney flow accounts (Fig. 2-1) indicates that thebreadth of the funding shortfall from FY 1990

through FY 1995 narrowed, expanded subsequent to that in FY 1996 and continued in a deficit situation until FY 1997. This means thatfunds necessary for capital investments werecovered not only by procurement through cash
flow generated by companies themselves but
also by procurement of outside fund, which thenincreases the balance of liabilities. In the following FY 1998, it shifted to a fund surplus andthe surplus in 1999 amounted to 4% against
GDP.
The allocation of the household fund surplus,
i.e., savings, to the corporate fund shortages isthe basic financial flow. This relationship collapsed in recent years, however, and household
cash savings are being absorbed by the government sector where losses are gradually expanding. Nevertheless, as confirmed in the next section, this does not necessarily mean that the corporate sector has developed a margin of flexibility in the procurement of funds.

(%)
10
5
0
-5
-10

Non-financial corporations
Household budget

General government
Overseas

-15
90

91

92

93

94

95

96

97

98

99
(fiscal year)

Fig. 2-1 Transitions in Fund Shortages by Sector (against GDP)
Source: Prepared based on the Bank of Japan, Cash Flow Accounts

6

Refer to the Japan Development Bank (1992) for funding conditions in the 1980s. In addition, refer to the Development Bank of Japan (2001) for trends in longer term fundshortages.
Development Bank of Japan Research Report/ No. 29

5The major change from fund shortages tosurpluses in the non-financial corporate section
described above is a characteristic feature even if
compared to other countries (Fig. 2-2). Fundshortages against GDP in European countries
during the 1990s was held within a plus/minus
range of about 2%, while the range in Japanvaried greatly from –9% to +5%.
In order to confirm trends in fund shortages
by company scale, let us look at the cash flow

amount less capital investments by company
scale (Fig. 2-3). This value expresses fund shortages relating to capital investments.
Based on the graph, it is evident that, as
large movements overall, the moves of companies with more than ¥1.0 billion in capital contribute greatly; however, the effect of companies
with less than ¥100 million in capital is also sizable and the effect of small-scale companies, inparticular, underlies the recent fund surpluses.

(%)
6
4
2
0
-2
-4
-6
Japan

-8

U.S.

U.K.

France

-10
91

92

93

94

95

96

97

98

99

(calendar year)

Fig. 2-2 Comparison of Non-Financial Corporate Sector Fund Shortages (against GDP)
Source:Prepared based on the Bank of Japan, International Comparative Statistics(¥ril.)
50-5-10Less than ¥100 mil.
¥100 mil. – 1.0 bil.
more than ¥1.0 bil.
total scale

-15
-20
90

91

92

93

94

95

96

97

98

99
(fiscal year)

Fig. 2-3 Cash Flow – Capital Investments (by scale)
Note:

Cash flow = current term net profit – dividends – bonuses + depreciation costs
Capital investment amount = amount of increase of tangible fixed assets (excluding land) + depreciation costs
Source: Prepared based on the Ministry of Finance, Corporate Statistics Annual Report

6

Development Bank of Japan Research Report/ No. 29

2.

Corporate Sector Money Flow in the
1990s– Restrained Capital Investments and Reduced Financial Debt –In this section, I will confirm how the nonfinancial corporate sector is managing the funds
against the background of fund shortages seen in
Section 1.
Viewing the overall flow of money of thecorporate sector in the 1990s by money flow
accounts, we see that there was an increase of no
more than ¥8 trillion in terms of management
while there was an increase of ¥97 trillion interms of procurement. The increase in loans accounts for ¥91 trillion of this and it increased by¥110 trillion during the period 1990-96, though it
was followed by a drop of ¥20 trillion during thesubsequent three years (Tale 2-1).
The diagram below illustrates the correspondence between such money flow (fundshortage) and actual fund demand (Fig. 2-4).
In FY 1990-96, there were many investments in real assets, which gave rise to a ¥121
trillion funding shortfall. Cash flow is the sum ofinternal reserves and depreciation costs while
capital investments, etc., are the sum of the netincrease in real assets and depreciation costs.
In FY 1997-99, the increase in real assets
grew and ¥32 trillion of the cash flow was allocated to a reduction in financial liabilities as afund surplus.

Table 2-1 Money Flow in Private Sector Non-Financial Corporations (based on transactions)Management
FY
Cash & deposits
Stock and disbursements

Loans
Nonstock securities

Accounts due & accrued liabilities
External credit
Inter-company credit & other
Total
Procurement
FY
Stock and disbursements(unit: ¥tril)

90~96
-3
-9
11
-1
-2
28
12
36

97~99
0
-4
0
16
-3
8
-45
-28

(unit: ¥tril)Inter-company credit & other
Total

90~96
16
110
17
-13
27
157

97~99
4
-20
0
-2
-42
-60

Management and procurement amount
FY
Total fund management
Total fund procurement
Fund shortage

90~96
36
157
-121

97~99
-28
-60
32

Borrowings
Nonstock securities

Accounts due & accrued liabilities

Source:

90s
-3
-13
11
15
-5
36
-33
8

90s
20
91
17
-15
-16
97
(unit: ¥tril)

90s
8
97
-89

Prepared based on the Bank of Japan, Cash Flow Accounts

Development Bank of Japan Research Report/ No. 29

7

FY ’90-’96: Shortfall
Increase infinancialassets¥36 trillion

FY ’97-’99: Surplus

Increase infinancialliabilities¥157 trillion

Decrease infinancialliabilities¥60 trillion

Decrease infinancial assets¥28 trillion(fund surplus)¥32 trillion

Capital investments, etc.

Capital investments, etc.

Increase in (fund shortage)
real assets¥121 trillion(net
investments)

Increase inreal assets (net
investments)

Depreciation(capital depletion)

Internal
Cashreserves
flow(profit –dividends, etc.)

Depreciation

Internal reserves(profit –dividends, etc.)

Depreciation(capital
depletion)

Depreciation

Cash
flow

Fig. 2-4 Correspondence between Private Sector Non-Financial Corporation Money Flow andInvestments/Internal Reserves

The fund surplus at the end of the 1990s
was thus allocated to financial liabilities. That
does not mean, however, that there was a marginof flexibility in the cash flow. At the end of the
1990s, cash flow instead was stagnant and capital investments were also restrained at a level

8

Development Bank of Japan Research Report/ No. 29

lower than that at the beginning of the 1990s (Fig.
2-5). Combining these various factors, it is possible to see this as the promotion of a reduction
in liabilities by restraining capital investments,
etc., rather than as leeway in the cash flow.

(¥tril.)70

Cash flow

60

Capital investments

50
40
30
20
10
0
90

91

92

93

94

95

96

97

98

99
(fiscal year)

Fig. 2-5 Cash Flow and Capital Investments
Note:

Cash flow = current term net profit – dividends – bonuses + depreciation costs
Capital investment amount = amount of increase of tangible fixed assets (excluding land) + depreciation
costs
Source: Prepared based on the Ministry of Finance, Corporate Statistics Annual Reportthroughout the 1990s.
Let us look first at comparisons in the net
fund shortage by industry in FY 1991 and FY
1998 (Figs. 2-6 & 2-7). The monetary amountshown by the bold line in the graphs is the net
fund shortage by industry.

3. Transitions in Fund Shortages as Indicated in Corporate Financial Data
– Inter-Industry and Inter-Company
Disparities –I estimated the total net amount of the fundshortage and surplus by industry and the grossamount by company and confirmed the changes

Serv ice

Elect ricit y & nat ural gas

T ran sp o rt & co m m un icat io n s

Real est at e

W ho lesale & ret ail

Con st ruct io n

M in in g

Ot h er m anufact urin gAgricult ure, fo rest ry ,fisheries an d aquacult ure

P recisio n equip m en t

T ran sp o rt equipm en t

Elect ric equipm en t

General m achin ery

M et allic p roduct s

Non ferrous m et als

St eelCeram ics & eart h enware

Rubber

To tal s h ortage

P et roleum

Ch em icals

P ublish in g & p rint in g

P aper & p ulp

W o od p roduct s

To tal s u rplu s
Net amo u nt
T ext iles

Fo od p roduct s(¥1.0 bil.)
800
600
400
200
0
-200
-400
-600
-800
-1,000-1,200-1,400Fig. 2-6 Fund Shortage by Industry (FY 1990, gross)
Development Bank of Japan Research Report/ No. 29

9Service

Elect ricit y & n at ural

T ransp ort & com m un icat ions

Real est at e

W holesale & ret ail

M ining

Const ruct ion

Ot her m an ufact uring

Agricult ure, fo rest ry,
fisheries and aquacult ure

P recisio n equipm en t

T ransp ort equipm en t

E lect ric equipm en t

Gen eral m achin ery

M et allic pro duct s

Non ferro us m et als

St eelCeram ics & eart henware

RubberT otal shortage

P et roleum

Ch em icals

P ublish in g & p rint ing

P aper & pulp

T ex t iles

T otal surp lus
N et amountW o od pro duct s

Fo od pro duct s(¥1.0 bil.)
800
600
400
200
0
-200
-400
-600
-800
-1,000-1,200-1,400Fig. 2-7 Fund Shortage by Industry (FY 1998, gross)
Notes: 1. 2,224 listed publicly-traded common companies with usable common data
2. Fund shortage = cash flow – capital investments
Cash flow = internal reserves + depreciation costs
Internal reserves = after-tax current profit /loss – dividends – bonuses
Source:Prepared based on Development Bank of Japan corporate financial data

In FY 1991, similar to a macro-trend, theoverall net amount was negative and it is apparent that many industries shared the same fundshortage situation. In contrast, there was an increase in industries that switched to the positivein FY 1998, moving overall toward a surplus.
The bar portion of the graphs shows a comparison of the total gross amount of individual
industries based on estimates of the fund shortage amount by industry. The disparity between
companies with a surplus and those with an
shortage is relatively narrow depending on the10

Development Bank of Japan Research Report/ No. 29

industry; in 1998, however, the differences between companies with surpluses and those withshortages is large depending in the industry andthe disparity is notable.
Above, in Chapter II, I confirmed the fundshortage from various angles and the fund shortages are basically linked to changes in the net
financial liability balance. Inter-industry andinter-company disparities as reflected in thesefund shortages and surpluses emerge more distinctly than indices that show the degree of freedom of fund capabilities that companies have. I
confirm this point in Chapter III.

III Corporate Sector Repayment
Burden1.

Cash Flow after Repayment andRepayment Burden

In Chapter III, I focus on the indices of cash flow
after repayment and repayment burden instead offund shortages and surpluses in order to analyze
the effects of liability repayment on fund procurement decisions by corporations. As explained below, these are indices that show theamount of cash that companies have that they are
relatively free to use. The external procurementof funds generates considerable additional costs7
compared to procurement through internal funds
and importance is placed on this difference.

Fund shortages express the so-called net
financial balance and are important in observing
changes in the net balance of financial liabilities(Fig. 3-1). Fund shortages in financial terms (=loans, etc. – repayments, etc. – increase in financial assets of (1)) correspond to excess investment in real terms (= capital investments, etc. –cash flow of (1)) and fund surpluses (= repayments, etc. + increase in financial assets – increase in loans of (2)) correspond to excess savings (= cash flow – capital investments, etc. of(2)). If investments are within the scope of the
cash flow, the net financial balance = 0 and there
is no change in the financial position (= net financial liabilities).

(1) With fund shortages(2) With fund surpluses

Repayments, etc.

Repayments, etc.

Loans, etc.

Loans, etc.

Increase infinancial assets
Fund flowtable (net)Fund shortage(excessinvestments)

Cash surplus(excess savings)

Capitalinvestments, etc.

(depreciation
costs)

Increase infinancial assets

Cash flow(internal reserves)(depreciation
costs)Cash flow

Capitalinvestments, etc.

(internal reserves)(depreciation
costs)(depreciation
costs)

Fund shortages/surpluses (= net financial balance) ß correspondence à excess investments in real
assets (= capital investments – cash flow)
Fig. 3-1 Relationship of Fund Shortages/Surpluses and Real Investments, etc.

7
It is necessary to be aware that opportunity costs mustalso be taken into consideration in the case of internal reserves. That is, investments that do not generate profits thatwould be linked to dividends (or increase in stock price) of
a level corresponding to the going market price basically do
not have the support of shareholders. Consequently, it isnecessary for company management to be aware of an internal profit rate of a certain extent when undertaking investments.

Development Bank of Japan Research Report/ No. 29

11Nevertheless, it is necessary when considering the fund procurement decisions for investments, etc., to be aware of the fact that repayments, etc. (= repayment of loans or redemptionof corporate bonds) are frequently determined bycontract at the time of past procurements.8 Fig. 32 is a recombination of the left-hand side of Fig.
3-1 viewed from this perspective. The use offunds and procurements is decided with priority
from the bottom up. Consequently, what is important here in procuring funds to be used bycompanies for investments is not fund shortages
but that portion of funds that is readily available
for use indicated by the arrows, in other words,
cash flow less repayments, etc. This is referred toas “cash flow after repayment.” As indicated in
the next section and on, it is possible to comprehend the situation by industry and make comparisons between industries by calculating andtabulating these funds for individual companies.
As an additional index, the ratio of repayments, etc., to cash flow is defined in this study

Increase infinancial assets

as “repayment burden.” This is an index for observing the ratio of funds in the possession of thecompany with usage restricted in advance by
repayments, etc., and it indicates the degree ofthe burden of liabilities for company management.
Though, with fund shortages and surpluses,
it is only possible to see excess funds being applied to net repayments, viewed in terms of repayment burden makes it possible to see the degree to which repayments that must be madewith priority are covered by the cash flow generated by the company. Repayment burden istherefore more appropriate than fund shortages
and surpluses as a way of ascertaining the vitality of the company. For example, when additional financing, etc., is undertaken in order to avoid
short on cash when repayment is difficult, cash
shortages are tentatively resolved and the difficulties do not come to the surface; the weight of
the repayment burden, however, still remains thesame.

Loans, etc.

Capitalinvestments, etc.

Readily usable funds (fund flow after repayment)
Cash flow(depreciation costs)

Can be used for capital investments, increasing
financial assets, early repayments, etc.

Repayments, etc.
(internal reserves)(depreciation costs)

Cash flow after repayment (= cash flow – repayments, etc.): Readily available funds (high degree of
freedom in decisions)Fig. 3-2 Cash Flow after Repayment and Scheduled Repayment Burden

8

It is normally necessary, therefore, to make regular
payments in certain amounts (contract repayment). It is said
that this subjects company managers to a certain degree ofdiscipline.
12

Development Bank of Japan Research Report/ No. 29

The repayment burden is equivalent to theredemption term (index of profit earning capacity in relation to liability balance) / repayment
term (index expressing the vital importance of
repayment) and the fewer the number of redemption years and the longer the repayment
term, the lighter the burden (Fig. 3-3).

repayments, etc.
cash flow=

liabilities
cash flow
liabilities
repayments, etc.

redemption term > the repayment term. In otherwords, if the repayment burden is greater than 1,
the cash flow is no longer capable of offsetting
repayments and it is necessary to replenish operating funds. That means that, even if the repayment burden happens to be less than 1, as it
approaches closer to 1, difficulties that arise in
repayment become more readily evident due toprofit fluctuations, resulting in so-called “termrisk.”
2.

\ repayment burden =redemption term ¸ repayment term
Fig. 3-3 Meaning of Repayment Burden(= Repayment and Redemption / Cash Flow)

Increase in the Repayment Burden of
Fixed Liabilities

The transitions in the repayment burden of actual
fixed liabilities (long-term loans and corporate
bonds) based on company financial data (Fig. 34) show that the repayment burden became
gradually heavier throughout the 1990s because
profits dropped and cash flow was reduced.

Consequently, when the liability burden > 1,
repayments, etc. > cash flow and then the

2.5
2.0
1.5
1.0
0.5
All industries

ManufacturingNon-manufacturing

0.0
91

92

93

94

95

96

97

98

Fig. 3-4 Repayment Burden = (Repayment + Redemption Amount)/Cash Flow
Notes: 1. 2,189 listed publicly-traded common companies with shared data available
2. Cash flow was defined as internal reserves + depreciation costs.
Internal reserves = after-tax current term profit/loss – dividends – bonuses
Source:Prepared based on company financial data of the Development Bank of Japan

Development Bank of Japan Research Report/ No. 29

13

Dividing this background into the number ofyears of redemption and repayment term using
the decomposition equation in Fig. 3-3, it can beseen that, while essentially flat at a repayment
term of about five years (Fig. 3-6), the number ofyears of redemption term increases from about
five to about seven years (Fig. 3-5). The longredemption term for non-manufacturing industries is due in part to their unique characteristicof requiring a long term for collection. However,attention is drawn to the fact that the number ofyears of redemption has been on the increase inboth manufacturing and non-manufacturing industries in recent years. In contrast, the repayment term has tended to become shorter, albeit
slightly.

The widening mismatch between the number of years of redemption and the repayment
term aggravates the term risk associated with theliabilities held by the company and it could besaid that it is stimulating the demand for cash for
longer terms. In addition, with this situation in
the background, it also results in requests forrescheduling the repayment, etc., of existing
liabilities. On an individual basis, this isprobably inevitable if there are no prospects forcash flow recovery. Even so, however, if it remains impossible to remedy the situation, liabilities in actuality becomes uncollectable and there
is no recourse but to take steps such as reducing
the principal.

(years)8(years)
12

7

10

6

8

5

6

4
3

4

2

All industries
ManufacturingNon-manufacturing

2

All industries
ManufacturingNon-manufacturing

1
0

0
91

92

93

94

95

96

97

98

91

92

93

94

95

96

(fiscal year)

Fig. 3-5 Redemption Term

Fig. 3-6 Repayment Term

Notes: 1. 2,189 listed publicly-traded common companies with common data available
2. Cash flow was defined as internal reserves + depreciation costs.
Internal reserves = after-tax current term profit/loss – dividends – bonuses
3. Redemption term = liabilities/cash flow; liabilities = long-term loans + corporate bonds
4. Repayment term = liabilities/(repayments + redemption amounts)
Source: Prepared based on Development Bank of Japan corporate financial data

14

Development Bank of Japan Research Report/ No. 29

97
98(fiscal year)

Viewing the repayment term of long-termloans and corporate bonds (Figs. 3-7 & 3-8), a
tendency toward shorter repayment terms forcorporate bonds was evident through 1993.
Rather than a shortening of the average repay(years)
5.0
4.5
4.0
3.5
3.0
2.5
2.0
1.5
1.0
0.5
0.0
91

ment term, this is probably due to a temporary
concentration of redemptions of bonds that were
issued during the time of the bubble economy.

(years)1210864All industries
ManufacturingNon-manufacturing

All industries
ManufacturingNon-manufacturing

2
0

92

93

94

95

96

97
98
(fiscal year)

Fig. 3-7 Repayment Term ofLong-Term Loans

91

92

93

94

95

96

97
98
(fiscal year)

Fig. 3-8 Repayment Term ofCorporate Bonds

Notes: 1. 2,189 listed publicly-traded common companies with common data available
2. Cash flow was defined as internal reserves + depreciation costs.
Internal reserves = after-tax current term profit/loss – dividends – bonuses
3. Repayment term of long-term loans = long-term loans/repayment
4. Repayment term of corporate bonds = corporate bonds/redemption amount
Source: Prepared based on Development Bank of Japan corporate financial data

3. Balance between Cash Flow and Repayment Burden by Individual Company
Next, I will calculate the cash flow after repayment of listed publicly-traded companies andtotal positive amounts for each positive andnegative amounts for each negative in “gross”
terms for each industry and observe the extent of
the internal funds that are readily available foruse by the company.
The amounts in FY 1991 (Fig. 3-9) showthat they were positive in gross terms for mostindustries and companies, which is linked to a
positive in net terms for industries overall. There
were many negative amounts such as in wholesale and retail industries and they were also
negative in net terms.

The amounts in FY 1998 (Fig. 3-10) showthat positive and negative amounts generally
offset one another in manufacturing industries
and that cash flow and repayments, etc., are essentially balanced. Real estate and other industries with large negative amounts are notable
among non-manufacturing industries.
Still, on the other hand, there is also a large
disparity between manufacturing and nonmanufacturing industries in the number of companies in FY 1998 (Fig. 3-11).
It is evident based on the above that there is
a combination in non-manufacturing industries
with large negative amounts of some companies
with an excessively heavy repayment burden andothers with a burden that is not so heavy.

Development Bank of Japan Research Report/ No. 29

15

3,000
2,000
1,000
0
-1,000– amount+ amount
net amount-2,000ServiceElectricity & natural gas

T ransport & communications

Real estate

Wholesale & retail

Construction

MiningAgriculture, forestry,
fisheries and aquaculture

Other manufacturing

Precision equipment

T ransport equipment

Electric equipment

General machinery

Metallic products

Nonferrous metals

Steel

Ceramics &RubberPetroleum

Chemicals

Publishing & printing

Paper & pulp

Wood products

T extiles

Food products-3,000Fig. 3-9 Conditions of Cash Flow after Repayment (= Cash Flow – Repayments, etc.)(FY 1991, gross)
Notes: 1. 2,189 listed publicly-traded common companies with common data available
2. Cash flow was defined as internal reserves + depreciation costs.
Internal reserves = after-tax current term profit/loss – dividends – bonuses
3. Repayments, etc. = long-term loan repayments + corporate bond redemption amount
Source:Prepared based on Development Bank of Japan corporate financial data; figures for FY 1998

1,500
500
-500
-1,500– amountt+ amount
net amount-2,500Fig. 3-10 Conditions of Cash Flow after Repayment (= Cash Flow – Repayments, etc.)(FY 1998, gross)
Note:

16

Same as Fig. 3-9

Development Bank of Japan Research Report/ No. 29

ServiceElectricity & natural gas

T ransport & communications

Real estate

Wholesale & retail

Construction

MiningAgriculture, forestry,
fisheries and aquaculture

Other manufacturing

Precision equipment

T ransport equipment

Electric equipment

General machinery

Metallic products

Nonferrous metals

Steel

Ceramics & earthenware

RubberPetroleum

Chemicals

Publishing & printing

Paper & pulp

Wood products

T extiles

Food products-3,500

100%
80%
60%
40%
20%

Negative

More than 1

ServiceElectricity & natural gas

T ransport & communications

Real estate

Wholesale & retail

Construction

Agriculture, forestry,
fisheries and aquaculture
MiningOther manufacturing

Precision equipment

T ransport equipment

Electric equipment

General machinery

Metallic products

Nonferrous metals

Steel

Ceramics & earthenware

RubberPetroleum

Chemicals

Publishing & printing

Paper & pulp

Wood products

T extiles

Food products0%

1 or fewer

Fig. 3-11 Ratio of the Number of Companies According to Repayment Burden(= (Repayments + Redemption Amounts)/Cash Flow)
Notes:

1. 2,189 listed publicly-traded common companies with common data available
2. Cash flow was defined as internal reserves + depreciation costs.
Internal reserves = after-tax current term profit/loss – dividends – bonuses
Source: Prepared based on Development Bank of Japan corporate financial data; figures for FY 1998

4.

From the Perspective of Cash Flow
Trends in Recent Years

Though itemized statements of long-term loans
have not been released since FY 1999 accompanying the change in accounting systems, there
are some companies that have started releasing
their cash flow calculation sheets and these makeit possible to observe the relationship between
cash flow and repayments, etc. Though data forno more than 223 companies is available for FY
1999 and 301 companies for FY 2000 (Table 31), they reveal that repayments, etc., account forthe majority of cash flow obtained through routine business activities.

Table 3-1 Cash Flow and Repayment Burden# of companies releasing data
Unit
Pre-adjusted cash flow from operating activities(incl. depreciation costs)
Refunds on corporate tax, etc. – paid amount
Total otherCash flow from operating activities
Disbursements due to repayment of long-term loans ( △ )Disbursements due to redemption of corporate bonds ( △ )Dividend payments ( △ )Interest payments ( △ )FY 1999223¥ trillion
464.0(172.3)-146.2-12.5
305.4-141.6
-38.8
-39.9
-0.4

%
152.0
-47.9
-4.1
100.0
-46.4
-12.7
-13.1
-0.1

(unit: ¥tril., %)FY 2000301¥ trillion
%
666.5
155.7
(216.9)-221.2
-51.7
-17.5
-4.1
428.0
100.0
-244.1
-57.0
-63.8
-14.9
-67.4
-15.7
-0.6
-0.1

Development Bank of Japan Research Report/ No. 29

17

Conclusion
In the latter half of the 1990s, the corporate sector shifted from a funding shortfall to a surplus
and, in the overall corporate sector, balance sheet
adjustments proceeded in the form of reductionsof the liability balance. Nevertheless, within thecontext of prolonged funding flow decline, therepayment burden of fixed liabilities increased
and disparities between industries and companies
became apparent in the degree to which the adjustments were promoted.
While there was little change in the repayment term, there was a tendency for the redemption term (= number of years of redemption capability) to lengthen and, therefore, the repayment burden intensified and the term risk of the18

Development Bank of Japan Research Report/ No. 29

liabilities also heightened. Consequently, thisseemingly led to an increase in the long-term
funding demand.
The increase in the repayment burden constrained self-financed funds that are readily
available for investments and became a factor in
the slowdown of investments. Cash flow after
repayment became large negative amounts in a
number of industries and balance sheet adjustments will probably need to be continued until
conditions that facilitate investments are restored.
In addition, when adjustments are difficult toimplement on their own in individual cases, there
is probably also a need for such companies toadopt drastic remedies such as enhancing profitability through restructuring.

References
Ando, K. 2001. “Risk-Averting Portfolio Trendsof Japanese Households,” DBJ Research
Report 15_____, Tomita, H. 2000. “The Slump in Plant
and Equipment Investment in the 1990s:
Focusing on Lowered Expectations, theDebt Burden and Other Structural Factors,” DBJ Research Report 3
Hachisuka, K., and Watanabe, T. 1992. “Flowof Funds in the 80s and Future Corporate
Finance in Japan,” JDB Research Report
29

Development Bank of Japan Research Report/ No. 29

19

List of Back Numbers (Including JDB Research Report)
No. 29 Corporate Financing Trends in Recent Years: Fund Shortages and Repayment Burden (this issue)
No. 28 Urban Renewal and Resource Recycling: For the Creation of a Resource Recycling Society, July 2002
No. 27 Labor’s Share and the Adjustment of Wages and Employment, June 2002
No. 26 Survey on Planned Capital Spending for Fiscal Years 2001 and 2002, May 2002
No. 25 Environmental Information Policy and Utilization of Information Technology: Toward a Shift in Environmental Policy Paradigm, March 2002
No. 24 The Changing Structure of Trade in Japan and Its Impact: With the Focus on Trade in Information
Technology (IT) Goods, March 2002
No. 23 Microstructure of persistent ROA decline in the Japanese corporate sector: Inter-company disparties
and investment strategies, March 2002
No. 22 Recent Trends in the Japanese Economy: The Japanese Economy under Deflation and Prospects ofEvolution, February 2002
No. 21 Survey on Planned Capital Spending for Fiscal Years 2000, 2001 and 2002, December 2001
No. 20 Current Situation and Challenges for Cable Television in the Broadband Era, October 2001
No. 19 Recent Trends in the Japanese Economy: The Japanese Economy under Deflation, August 2001
No. 18 Introduction of a Home Appliance Recycling System: Effects & Prospects: Progress towards Utilisationof Recycling Infrastructure, June 2001
No. 17 Survey on Planned Capital Spending for Fiscal Years 2000 and 2001, June 2001
No. 16 Revitalization of Middle-aged and Elderly Workers in Japan’s Labor Markets: Requiring the Expansionof the Vocational Training Functions, March 2001
No. 15 Risk-Averting Portfolio Trends of Japanese Households, March 2001
No. 14 Consumption Demand Trends and the Structure of Supply: Focus on Retail Industry Supply Behavior,
March 2001
No. 13 Recent Trends in the Japanese Economy: Weakness of Current Economic Recovery and Its Background,
March 2001
No. 12 Empirical Reassessment of Japanese Corporate Investment Behavior: Features and Changes since the1980s, based on Micro-level Panel Data, March 2001
No. 11 Survey on Planned Capital Spending for Fiscal Years 1999, 2000 and 2001, October 2000
No. 10 Job Creation and Job Destruction in Japan, 1978-1998: An Empirical Analysis Based on EnterpriseData, September 2000
No. 9

Recent Trends in the Japanese Economy: Information Technology and the Economy, September 2000

No. 8

Trend of International Reorganization Affecting the Japanese Automobile and Auto Parts Industries,
June 2000

No. 7

Survey on Planned Capital Spending for Fiscal Years 1999 and 2000, June 2000

No. 6

Current Status and Future Perspective of the Japanese Remediation Industry: Technology and Market
for Underground Remediation, May 2000

No. 5

Recent Trends in the Japanese Economy: The 1990s in Retrospect, March 2000

No. 4

Destabilized Consumption and the Post-bubble Consumer Environment, February 2000

No. 3

The Slump in Plant and Equipment Investment in the 1990s: Focusing on Lowered Expectations, theDebt Burden and Other Structural Factors, January 2000

No. 2

Survey on Planned Capital Spending for Fiscal Years 1998, 1999 and 2000, November 1999

No. 1

Corporate Strategies in Japan’s Semiconductor Industry: Implications of Development in Other AsianCountries, November 1999_________________________________________________________________________________________JDB Research Report
No. 96 Recent Trends in the Japanese Economy: Focused on Fixed Investment and Capital Stock, August 1999
No. 95 Efforts to Protect the Natural Environment in the United States and Germany: Environmental Mitigation and Biotope Conservation, July 1999
No. 94 Survey on Planned Capital Spending for Fiscal Years 1998 and 1999, June 1999
No. 93 Towards the realization of ‘environmental partnership’: A survey of Japan’s environmental NPO sector
through comparison with Germany, June 1999
No. 92 The Impact of Demographic Changes on Consumption and Savings, March 1999
No. 91 Recent Research and Development Trends in Japanese Enterprises: Technology Fusion, March 1999
No. 90 Recent Trends in the Japanese Economy: Prolonged Balance Sheet Adjustment, January 1999
No. 89 Impact of Asset Price Fluctuations on Household and Corporate Behavior: A Comparison between
Japan and the U.S., December 1998
No. 88 Survey on Planned Capital Spending for Fiscal Years 1997, 1998, and 1999, December 1998
No. 87 Foreign Exchange Rate Fluctuations and Changes in the Input-Output Structure, November 1998
No. 86 Structural Changes in Unemployment of Japan: An Approach from Labor Flow, November 1998
No. 85 Recent Trends in the Japanese Economy: Characteristics of the Current Recession, August 1998
No. 84 R&D Stock and Trade Structure in Japan, August 1998
No. 83 Survey on Planned Capital Spending for Fiscal Years 1997 and 1998, August 1998
No. 82 The Significance, Potential, and Problems of DNA Analysis Research: Establishing Public Acceptanceis Essential, May 1998
No. 81 The Japan Development Bank Reports on Capital Spending: Survey for Fiscal Years 1996, 1997 and1998 Conducted in August 1997, March 1998
No. 80 Recent Trends in the Japanese Economy: Growth Base of the Japanese Economy, January 1998
No. 79 Information Appliances: The Strength of Japanese Companies and Tasks for the Future, January 1998
No. 78 Challenges and Outlook for the Japanese Machinery Industries: Impact of ISO14000 Series and Environmental Cost, January 1998
No. 77 Current Conditions and Issues of Computerization in the Health Care Industry: For the Construction of
a Health Care Information Network, January 1998
No. 76 Household Consumption and Saving in Japan, December 1997
No. 75 The Direction of Japanese Distribution System Reforms: Strengthening the Infrastructure to Support
Diverse Consumer Choices, November 1997
No. 74 Foreign Direct Investments by Japanese Manufacturing Industries and Their Effects on International
Trade, October 1997
No. 73 The Impact of the Changing Trade Structure on the Japanese Economy: With Special Focus on the
Effects on Productivity and Employment, October 1997
No. 72 An Analysis of Foreign Direct Investment and Foreign Affiliates in Japan, August 1997

No. 71 Recent Trends in the Japanese Economy: Stock Replacement and New Demand as Aspects of
Economic Recovery, August 1997
No. 70 Corporate Fundraising: An International Comparison, June 1997
No. 69 The Japan Development Bank Reports on Capital Spending: Survey for Fiscal Years 1996 and 1997
Conducted in February 1997, May 1997
No. 68 The Japan Development Bank Reports on Capital Spending: Survey for Fiscal Years 1996 and 1997
Conducted in August 1996, August 1997
No. 67 An International Comparison of Corporate Investment Behavior: Empirical Analysis Using Firm Data
from Japan, France and the US, April 1997
No. 66 Housing in the National Capital: Analysis of the Market for Housing using Micro Data, March 1997
No. 65 The Environment for Locating Business Operations in Major East Asian Cities, January 1997
No. 64 Direction of Reconstruction of Business Strategy in the Chemical Industry, January 1997
No. 63 Reflection on Discussions Concerning Regulation of the Electric Power Industry: Deregulation of theElectric Power Industry in Japan and Implication of Experiences in the United States, December 1996
No. 62 Current Status and Future Perspective of the Japanese Semiconductor Industry, November 1996
No. 61 A Breakthrough for the Japanese Software Industry?: Responsiveness to Users’ Needs is the key, October 1996
No. 60 Recent Trends in the Japanese Economy Focusing on the Characteristics and Sustainability of the Current Economic Recovery, September 1996
No. 59 Analysis of the Primary Causes and Economic Effects of Information: Related investment in the UnitedStates and Trends in Japan, August 1996
No. 58 Selected Summaries of Research Reports: Published in FY1995, June 1996
No. 57 The Japan Development Bank Reports on Capital Spending: Survey for Fiscal Years 1995 and 1996
Conducted in February 1996, May 1996
No. 56 Recent Trends in the Japanese Economy, May 1996
No. 55 Issues Concerning the Competitiveness of the Japanese Steel Industry, February 1996
No. 54 Changes in the Financial Environment and the Real Economy, January 1996
No. 53 The Japan Development Bank Reports on Capital Spending: Survey for Fiscal Years 1994, 1995 and1996 Conducted in August 1995, October 1995
No. 52 Current Economic Trends: Focusing on the Appreciation of the Yen and its Effects, October 1995
No. 51 Problems Concerning the International Competitiveness of the Petrochemical Industry, October 1995
No. 50 An Economic Approach to International Competitiveness, October 1995
No. 49 Selected Summaries of Research Reports Published in FY1994, July 1995
No. 48 Strategies for Improving the Efficiency of the Japanese Physical Distribution System: Part 2, July 1995
No. 47 Issues on International Competitive Strength of the Auto Industry, June 1995
No. 46 Problems Concerning the International Competitiveness of the Electronics and Electric Machinery Industry, June 1995
No. 45 The Japan Development Bank Reports on Capital Spending: Survey for Fiscal Years 1994 and 1995
Conducted in March 1995, June 1995
No. 44 Strategies for Improving the Efficiency of the Japanese Physical Distribution System, March 1995

No. 43 Capital Spending Recovery Scenario Cycle and Structure, August 1994
No. 42 Progress of International Joint Development between Industrialized Countries on the Private Level,
May 1994
No. 41 The Japan Development Bank Reports on Capital Spending: Survey for Fiscal Years 1993, 1994 and1995 Conducted in August 1994 , November 1994
No. 40 Selected Summaries of Research Reports Published in FY1993, June 1994
No. 39 Recent Trends in Japan’s Foreign Accounts, April 1994
No. 38 The Japan Development Bank Reports on Capital Spending: Survey for Fiscal Years 1993 and 1994
Conducted in March 1994, April 1994
No. 37 Economic Zones and East Asia Prospect for Economic Activity Oriented Market Integration, December
1993
No. 36 Japanese Corporate Responses to Global Environmental Issues, December 1993
No. 35 The Japan Development Bank Reports on Capital Spending: Survey for Fiscal Years 1992, 1993 and1994 Conducted in August 1993, September 1993
No. 34 Structure of Profit to Capital in the Manufacturing Industry, September 1993
No. 33 Comparison of the Japanese and The U.S. Labor Markets, October 1992
No. 32 The Relative Competitiveness of U.S., German, and Japanese Manufacturing, March 1993
No. 31 The Japan Development Bank Reports on Capital Spending: Survey for Fiscal Years 1992 and 1993
Conducted in March 1993, April 1993
No. 30 The Japan Development Bank Reports on Capital Spending: Survey for Fiscal Years 1991, 1992 and1993 Conducted in August 1992, December 1992
No. 29 Flow of Funds in the 80s and Future Corporate Finance in Japan, November 1992
No. 28 The Japan Development Bank Reports on Capital Spending: Survey for Fiscal Years 1991 and 1992
Conducted in February 1992, April 1992
No. 27 An Analysis of Foreign Direct Investment in Japan, March 1992
No. 26 Projection of Japan's Trade Surplus in 1995: Analysis of Japan's Trade Structure in the 80s, February
1992
No. 25 Intra-Industry Trade and Dynamic Development of The World Economy, November 1991
No. 24 The Japan Development Bank Reports on Capital Spending: Survey for Fiscal Years 1990, 1991 and1992 Conducted in August 1991, September 1991
No. 23 The Japan Development Bank Reports on Capital Spending: Survey for Fiscal Years 1990 and 1991
Conducted in February 1991, March 1991
No. 22 Trends of the Petrochemical Industry and its Marketplace in East Asia, March 1991
No. 21 The Japan Development Bank Reports on Capital Spending: Survey for Fiscal Years 1989, 1990 and1991 Conducted in August 1990, September 1990
No. 20 Deepening Economic Linkages in The Pacific Basin Region: Trade, Foreign Direct Investment andTechnology, September 1990
No. 19 The Japan Development Bank Reports on Capital Spending: Survey for Fiscal Years 1989 and 1990
Conducted in February 1990, March 1990
No. 18 Petrochemicals In Japan, The US, and Korea an Assessment of Economic Efficiency, February 1990
No. 17 The Japan Development Bank Reports on Capital Spending: Survey for Fiscal Years 1988, 1989 and1990 Conducted in August 1989, October 1989
No. 16 Impact of the EC Unification on Japan’s Automobile and Electronics Industries, August 1989
No. 15 Industrial and Trade Structures and the International Competitiveness of Asia’s Newly Industrializing
Economies, August 1989
No. 14 The Japan Development Bank Reports on Capital Investment Spending: Survey for Fiscal Years 1988
and 1989 Conducted in February 1989, March 1989
No. 13 The Japan Development Bank Reports on Capital Spending: Survey for Fiscal Years 1987, 1988 and1989 Conducted in August 1988, September 1988
No. 12 Growing Foreign Investors’ Activities and the Future of Internationalization, September 1988
No. 11 Futures Tasks and Prospects for the Japanese Machine-Tool Industry, July 1988
No. 10 International Division of Labor in the Machine Industries Among Japan, Asia’s NICs and ASEANCountries, June 1988
No. 9

Trends of the Petrochemical Industry and its Marketplace in East Asia around Japan, May 1988

No. 8

The International Competitiveness of Japan and U.S. in High Technology Industries, April 1988

No. 7

The Japan Development Bank Reports on Private Fixed Investment in Japan, March 1988

No. 6

Economic Projections of the Japan’s Economy to the Year 2000, February 1988

No. 5

The Japan Development Bank Reports on Private Fixed Investment in Japan, September 1987

No. 4

Current Trends in the Japanese Auto Parts Industry in Overseas Production, July 1987

No. 3

Current Moves for Foreign Direct Investment into Japan, May 1987

No. 2

Overseas Direct Investments by Japanese Corporations, May 1987

No. 1

Current U.S. Consumption Trends, May 1987