Loans to financially distressed firms contributed to Korea's 1997 crisis. Possible explanations for these loans include bank's better inside information on borrowing firms, crony lending, and financial institutions' (FI) moral hazards (FIs' poor governance). We examined 6474 non-financial firms'...

Since the Asian economic crisis in 1997, some have argued that the poor corporate governance system was a contributing cause of the crisis. They claim that the weakness of minority shareholders' rights protection and the lack of market discipline for poor performing firms in the region made it...

Positivity in the workplace has been heralded to produce individual, social and organizational benefits. Although we know more about how positivity “broadens” and “builds” within individuals, little research has explicitly studied how positivity naturally occurs and dynamically unfolds...

Providing an integrated analysis of the event and its consequences, the chapters in the book consider the causes of the crisis, the response of the US government and International Monetary Fund, adjustments in the Korean monetary and fiscal policies, and the success of financial and corporate...

In an oligopolistic product market, shareholders strategically use information on rival firms' performances when designing management-incentive contracts. When shareholders use industry performance information through relative performances evaluation (RPE), they evaluate their manager's effort...

A parental seller with market power to some degree in its product market can earn rents. In this context, there is a gain to granting credit for the purchase of the product and thus the establishment of captive finance company for expanding the sales by offering loans to consumers who need...

A holdup model is analyzed in which one party, the seller, has an investment project that the other party, the buyer, can subsidize. The investment project remains the seller's; she cannot transfer her entire control rights to it. In particular, she can always refuse to allow the buyer to...

This paper develops a limiting theory for Wald tests of weak exogeneity in error correction models (ECMs). It is well known that Wald statistics on cointegrated systems may involve nonstandard distribution and nuisance parameters, if $I(1)$ variables are not negligible in the statistics. To...

Abstract It is increasingly recognized that institutional factors such as trade unions do play a dominant role in determining the levels of wages, standard of working conditions. This is more pronounced in the industrial sector of developing economies. The role of labor organizations in the...