Lin, Jyh-Horng; Chang, Chuen-Ping; Lin, Hsiao-Ning - In: Applied Economics Letters 20 (2013) 15, pp. 1368-1373
This article proposes a framework for bank default risk measure under government capital injection explicitly coinciding with an adverse signal that a rescued bank is expected to have significant future losses. A bank facing a serious problem of early closure may have a strong incentive to...