Financial Leverage of Korean Business Conglomerates "Chaebols" in the Post-Asian Financial Crisis

Asian Financial Crisis: The South Korean Experience

Why was it that the Korean economy, which had been envied and imitated by other developing economies for the past 30 years, suddenly spiraled into a currency-induced crisis late in 1997? How was it possible that such a vibrant economy, which had been developing so rapidly, displaying in fact the most rapid development amongst the Asian nations, was suddenly overcome by such a severe economic do...

The Impact of Financial Crisis on the Economic Values of Financial Conglomerates

Financial Contagion in the East Asian Crisis

In this chapter, we analyze empirically the existence and extent of financial contagion in the East Asian crisis. We define financial contagion as a significant increase in correlation of financial variables after controlling fundamentals and common shocks, and we develop an autoregressive model to measure contagion. In particular, we attempt to exclude the common effects of the crisis in South...

Revisiting the Case for a Tobin Tax Post Asian Crisis: a Financial Safeguard or Financial Bonanza?

Incentive Problems in Financial Conglomerates ∗

This paper analyzes how scope-expansion by a bank affects its lending activity. Scope economies between activities naturally arises from an incentive problem in the lending business. It shows that the sale of multiple product can impede banks to credibly commit to penalize borrowers in default. Thus, borrowers are more likely to face soft budget constraint. It finds that a more competitive envi...