Japan: Selected Issues
IMF Staff Country Reports, March 30, 2023
Source details
- Canonical URL
- Japan: Selected Issues
Other formats
Bibliographic details
- Published: March 30, 2023
- Series: IMF Staff Country Reports
- DOI: https://doi.org/10.5089/9798400237409.002
Executive summary and key findings
- The paper proposes two new drivers of corporate cash holdings and tests them using firm-level data in Japan.
- Private savings have shifted from households to the corporate sector.
- Driver 1: rising share of intangible capital contributes to higher corporate cash holdings.
- Driver 2: declining corporate tax rates contribute to higher corporate cash holdings.
- Empirical results confirm that more intangible capital and lower corporate tax rates contribute to corporate cash holdings, with the tax cuts more relevant for public firms.
Quantitative magnitudes (empirical results)
- Rising intangible capital in Japan can explain about a quarter of the increase of cash holdings among public firms.
- Rising intangible capital in Japan can explain about 30 percent of the increase of cash holdings among private firms.
- Decreasing corporate tax rates can explain about 4 percent of the increase in cash holdings among public firms.
- The effect of tax cuts is much weaker among private firms due to various subsidies and exemptions for subject matter experts.
Thematic coverage and keywords
- Subjects: Carbon tax, Financial services, Gender, Income, International organization, Labor, Monetary policy, National accounts, Taxes, Wages, Women, Yield curve
- Keywords: B. emission trend, Carbon tax, Global, Income, JGB yield curve, policy implication, STEM field, STEM worker, Wages, Women, Yield curve
International Monetary Fund. Japan: Selected Issues. IMF Staff Country Reports 2023, 128 (2023). DOI: https://doi.org/10.5089/9798400237409.002
Content in this bundle
- Japan: Selected Issues; IMF Country Report No. 23/128; March 7, 2023