We empirically examine the correlation between extreme episodes of sectoral capital inflows, using a sample of 50 advanced and emerging economies from 2000Q1 to 2021Q4. We document that a sudden stop in one financial sector is often accompanied by a surge in another sector, especially in...

During the recent financial crisis, capital flow to hedge funds plunged, and competition among hedge fund managers intensified. This leads to a transfer of bargaining power from hedge fund managers to investors when negotiating fund managers' compensation contracts. We use a signaling game...

During the 2015 stock market crisis, the Chinese government used hundreds of billions of dollars to purchase shares directly in the secondary market. We find that, compared with un-rescued firms, rescued firms have significantly lower liquidity after the rescue. Policy uncertainty about...