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Outputs (6)

Financial Structure and Economic Development (2018)
Book Chapter
Allen, F., Gu, X., & Kowalewski, O. (2018). Financial Structure and Economic Development. In T. Beck, & R. Levine (Eds.), Handbook of Finance and Development. Edward Elgar Publishing

Political influence and financial flexibility: Evidence from China (2018)
Journal Article
Gu, X., Hasan, I., & Zhu, Y. (2019). Political influence and financial flexibility: Evidence from China. Journal of Banking and Finance, 99, 142-156. https://doi.org/10.1016/j.jbankfin.2018.12.002

This paper investigates how political influence affects firms’ financial flexibility and speed of adjustment toward target leverage ratios. We find that at the macro level, firms in environments with high political advantages, proxied by provincial a... Read More about Political influence and financial flexibility: Evidence from China.

How creditor rights affect the issuance of public debt: The role of credit ratings (2018)
Journal Article
Gu, X., Kadiyala, P., & Mahaney-Walter, X. W. (2018). How creditor rights affect the issuance of public debt: The role of credit ratings. Journal of Financial Stability, 39, 133-143. https://doi.org/10.1016/j.jfs.2018.11.001

We propose that credit ratings act as an information channel which, combined with more power being given to creditors by countries strengthening creditor rights, leads to an increase in the supply of public debt. From a firm-level dataset covering 51... Read More about How creditor rights affect the issuance of public debt: The role of credit ratings.

Does economic structure determine financial structure? (2018)
Journal Article
Allen, F., Bartiloro, L., Gu, X., & Kowalewski, O. (2018). Does economic structure determine financial structure?. Journal of International Economics, 114, 389-409. https://doi.org/10.1016/j.jinteco.2018.08.004

In this paper, we examine the relationship between the structure of the real economy and a country's financial system. We consider whether the development of the real economic structure can predict the direction of evolution of a country's financial... Read More about Does economic structure determine financial structure?.

The Interplay between Regulations and Financial Stability (2018)
Journal Article
Allen, F., & Gu, X. (2018). The Interplay between Regulations and Financial Stability. Journal of Financial Services Research, 53(2-3), 233-248. https://doi.org/10.1007/s10693-018-0296-7

The crisis demonstrated that microprudential regulation focusing on the risks taken by individual banks is not sufficient to prevent crises. This is because it ignores systemic risk. Six types of systemic risk are identified, namely: (i) panics – ban... Read More about The Interplay between Regulations and Financial Stability.