Bailout and Conglomeration /
The paper suggests that when firms differ stochastically in their productivity, a bank may find it optimal not to bail out the failed nonconglomerate firms at all, but to bail out conglomerates fully. Expectation of such bailout policy may encourage risk-averse firms to join a conglomerate to minimi...
| 1. Verfasser: | |
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| Format: | Zeitschrift |
| Sprache: | English |
| Veröffentlicht: |
Washington, D.C. :
International Monetary Fund,
1999.
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| Schriftenreihe: | IMF Working Papers; Working Paper ;
No. 1999/108 |
| Online Zugang: | Full text available on IMF |