Using micro-level data on mutual funds from different financial centers investing in equity and bonds, this paper analyzes how investors and managers behave and transmit shocks across countries. The paper shows that the volatility of mutual fund investments is quantitatively driven by investors...

This paper examines the impact of restricting foreign bank entry on bank net interest margins while controlling for (a) impediments to domestic bank entry, (b) the degree of foreign bank ownership of the domestic banking industry, (c) an array of bank-specific characteristics, (c) banking...

Given conflicting theoretical predictions about the impact of stock markets and banks on economic growth, this paper empirically evaluates this debate. The results emphasize the growth-enhancing role of stock markets and banks. Chile is clearly an outlier; it has less liquid stock markets and...

Is banking sector concentration associated with negative outcomes internationally? This paper finds that the answer is "no." Greater bank concentration is not strongly associated with negative outcomes in terms of financial sector development, industrial competition, political and legal system...

This paper evaluates (1) whether the exogenous component of financial intermediary development influences economic growth and (2) whether cross-country differences in legal and accounting systems (e.g., creditor rights, contract enforcement, and accounting standards) explain differences in the...