Most banks are subject to corporate income taxes while special purpose vehicles that hold securitized loans are corporate tax-exempt. We present a model that shows how this tax asymmetry creates an incentive for banks to sell loans. However, because moral hazard costs arise when banks...

Covers -- Editorial advisory board -- Guest editorial -- Advances in the corporate finance literature: a survey of recent studies on Korea -- Publisher note -- The cost of debt and the characteristics of audit firms -- The more connected, the better? Impact of connectedness on volatility and...

In this paper, we examine whether the presence of ex-military board directors affects firms' financial policies and ethical behavior in Korea, a country where the military has a unique historical role in society. Despite prolonged exposure to military rule during their formative years, firms...