Data
In this study, we use firm level data on small businesses in Japan from 2006 to 2009. We selected the sampling period to include the two years before and after the Lehman shock. The data are from the Credit Risk Database for Small and Medium Enterprises (CRD)established by several financial institutions and the CGCs under the guidance of the Small and Medium Enterprise Agency in Japan. The database is managed by the CRD Association. The data collection process targets firms defined as small and medium enterprises under the Small and Medium Enterprise Basic Law.