where the local banks are forced to contract credit. The risk management framework employed by the foreign bank creates a … loans, and therefore, it has a greater risk taking capacity than the acquirer. Thus, competition, and thereby the distortion …

Theory offers two diverging views on the effects of ex-ante litigation risk on corporate liquidity proxied by cash … holdings. Ex-ante litigation risk, however, is difficult to measure. We test the liquidity effects of ex-ante litigation risk … exploiting the phase-by-phase introduction of securities class actions (SCAs) in Korea. Following the increase in litigation risk …