Employing the first-generation currency crisis model of Flood and Garber (1984), I explore the financial effects of migrants' remittances on the economies of developing and emerging countries in a currency crisis. The model implies that remittances can contribute to a reduction in the likelihood...

We use a simple model to show that the importance of retained earnings and ownership concentration as bankruptcy determinants is inversely related to institutional quality. A test employing firm-level data for Korea and the US is consistent with this prediction.