Using a data set of Korean business groups in the period 1999–2006, just after the Asian Financial Crisis, this study shows how business groups' financial leverage can lead group-affiliated firms to lose market share to industry rivals. This analysis reveals that the negative effect of group...

Lending specialization on certain industry sectors can have opposing effects on monitoring (including screening) abilities and on the sectoral concentration risk of a credit portfolio. In this paper, we examine in the first part if monitoring abilities of German cooperative banks and savings...