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U.S. Banks, Crises, and Bailouts : From Mexico to LTCM

Stulz, Rene M. - 2000

This paper investigates the impact on bank stock prices of emerging market currency crises and bailouts. The stock market distinguishes between banks with exposure to a crisis country and other banks. In general, banks with exposures to a crisis country are affected adversely by currency events...

Persistent link: https://www.econbiz.de/10012471245

The Effects of Reconstruction Finance Corporation Assistance on Michigan's Banks' Survival in the 1930s

Calomiris, Charles W. - 2012

Our estimates treat the receipt of RFC assistance as an endogenous variable. We are able to identify apparently valid and powerful instruments (predictors of RFC assistance that are not directly related to failure risk) for analyzing the effects of RFC assistance on bank survival. We find that...

Persistent link: https://www.econbiz.de/10012460233

Liquidity, Efficiency and Bank Bailouts

Gorton, Gary - 2002

Why do governments bailout banking systems in distress? We argue that the government can efficiently provide liquidity. We present a general equilibrium model in which not all assets can be used to purchase all other assets at every date. At some dates agents want to sell projects or securities....

Persistent link: https://www.econbiz.de/10012469552

Financial Restructuring in Banking and Corporate Sector Crises : What Policies to Pursue?

Claessens, Stijn - 2001

We review the literature on resolving bank and corporate sector crises to identify government policies that affect the depth of a crisis and the ease and sustainability of recovery, and to analyze their fiscal cost. A consistent framework - including sufficient resources for loss-absorption and...

Persistent link: https://www.econbiz.de/10012470334

The Structure and Formation of Business Groups : Evidence from Korean Chaebols

Almeida, Heitor - 2009

In this paper we study the determinants of business groups' ownership structure using unique panel data on Korean chaebols. In particular, we attempt to understand how pyramids form over time. We find that chaebols grow vertically (that is, pyramidally) as the family uses well-established group...

Persistent link: https://www.econbiz.de/10012463666

On the Fiscal Implications of Twin Crises

Burnside, Craig - 2001

This paper explores the implications of different strategies for financing the fiscal costs of twin crises for inflation and depreciation rates. We use a first-generation type model of speculative attacks which has four key features: (i) the crisis is triggered by prospective deficits; (ii)...

Persistent link: https://www.econbiz.de/10012470447

Private Inflows when Crises are Anticipated : A Case Study of Korea

Dooley, Michael P. - 2000

Models of financial crises based on distortions in capital markets have strong implications for the behavior of investors leading up to crises. In this paper we evaluate the hypothesis that deregulation of financial markets in Korea provided the incentives and opportunities for a sequence of...

Persistent link: https://www.econbiz.de/10012470739

Causes of the Korean Financial Crisis : Lessons for Policy

Hahm, Joon-Ho - 2000

This paper uses an asymmetric information framework to understand the causes of the recent financial crisis in Korea. It shows that the Korean data is consistent with this explanation of the crisis. It then draws on this analysis to discuss several lessons that can help guide Korean policymakers...

Persistent link: https://www.econbiz.de/10012471293

Bank Ties and Bond Market Access : Evidence on Investment-Cash Flow Sensitivity in Japan

McGuire, Patrick - 2003

The banking literature has established that banks can alleviate information asymmetries between lenders and borrowers, while the Q literature has used cash flow sensitivity analysis to test whether financing constraints hinder investment. This paper investigates whether bank ties in Japan were...

Persistent link: https://www.econbiz.de/10012469054

Conglomerate Industry Choice and Product Differentiation

Hoberg, Gerard - 2011

conglomerates are most likely to operate and to understand conglomerate valuations. We find that conglomerates are more likely to … opportunities "between" them. Conglomerate firms have lower stock market valuations than matched single-segment firms when their … products are easier to replicate with single-segment firms. Conglomerate firms have stock market premiums when they have higher …

Persistent link: https://www.econbiz.de/10012461436