Collective Relationship Banking and Private Information Monitoring in Korea

Yoonhee Tina Chang ()

No 06-2, Working Papers from Centre for Competition Policy, University of East Anglia

Abstract: The structure of conglomerates embedded in the strong vertical ownership network in East Asia was believed to be a driving force for the economic success but was also blamed for the recent financial crisis in Asia given the fallacy - too big to collapse. This paper introduces a notion of collective relationship banking (CRB) as a mechanism for monitoring private information and investigates the likelihood of such a banking relationship when the borrowing firms have heterogenous vertical ownership structure using a Korean firm level panel dataset. Policy concerns are then addressed since the post-crisis corporate restructuring may create a more concentrated banking relationship with a few dominant banks.

Keywords: Collective relationship banking; vertical ownership; information monitoring; relation-based governance (search for similar items in EconPapers)
JEL-codes: G21 G28 L13 L59 (search for similar items in EconPapers)
Date: 2005-10

Downloads: (external link)
http://www.ccp.uea.ac.uk/publicfiles/workingpapers/CCP06-2.pdf (application/pdf)
Our link check indicates that this URL is bad, the error code is: 500 Can't connect to ccpweb.mgt.uea.ac.uk:80 (connect: timeout) (http://www.ccp.uea.ac.uk/publicfiles/workingpapers/CCP06-2.pdf [302 Found]--> http://ccpweb.mgt.uea.ac.uk/publicfiles/workingpapers/CCP06-2.pdf)

Related works:
Journal Article: Collective relationship banking and private information monitoring in Korea (2007)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: http://EconPapers.repec.org/RePEc:ccp:wpaper:wp06-02

Access Statistics for this paper

More papers in Working Papers from Centre for Competition Policy, University of East Anglia
Contact information at EDIRC.
Series data maintained by Cheryl Whittkaer ().