Johnson, Simon; Gormley, Todd A.; Rhee, Changyong - National Bureau of Economic Research (NBER) - 2011
Can a government credibly promise not to bailout firms whose failure would have major negative systemic consequences? Our analysis of Korea's 1997-99 crisis, suggests an answer: No. Despite a general "no bailout" policy during the crisis, the largest Korean corporate groups (chaebol) - facing...