Journal ArticleDOI
Banking on politics : when former high-ranking politicians become bank directors
Matías Braun,Claudio Raddatz +1 more
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In this article, the authors presented a large number of countries on how frequently former high-ranking politicians become bank directors and found that the phenomenon is more prevalent where institutions are weaker and governments more powerful but less accountable.Abstract:
New data are presented for a large number of countries on how frequently former high-ranking politicians become bank directors. Politician-banker connections at this level are relatively rare, but their frequency is robustly correlated with many important characteristics of banks and institutions. At the micro level, banks that are politically connected are larger and more profitable than other banks, despite being less leveraged and having less risk. At the country level, this connectedness is strongly negatively related to economic development. Controlling for this, the analysis finds that the phenomenon is more prevalent where institutions are weaker and governments more powerful but less accountable. Bank regulation tends to be more pro-banker and the banking system less developed where connectedness is higher. A benign, public interest view is hard to reconcile with these patterns. Banking sector development, institutions, political economy.read more
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A Fistful of Dollars: Lobbying and the Financial Crisis
TL;DR: In this article, the authors used detailed information on lobbying and mortgage lending activities, and found that lenders lobbying more on issues related to mortgage lending had higher loan-to-income ratios, securitized more intensively, and had faster growing portfolios.
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Structural power and bank bailouts in the United Kingdom and the United States
TL;DR: In this paper, structural power can be exercised strategically, distinct from instrumental power based on lobbying, and that it explains consequential variations in bailout design in the United Kingdom, the United States, France, and Germany.
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Emerging Markets Research: Trends, Issues and Future Directions
TL;DR: The authors survey recent research on emerging markets (EM) within the fields of economics, finance, international business and management, and highlight the areas of greatest interest and those that have received relatively less attention to date.
Journal ArticleDOI
Emerging markets research: Trends, issues and future directions
TL;DR: The authors survey recent research on emerging markets (EM) within the fields of economics, finance, international business and management, and highlight the areas of greatest interest and those that have received relatively little attention to date.
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Leveraged interests: Financial industry power and the role of private sector coalitions
Stefano Pagliari,Kevin Young +1 more
TL;DR: This article showed that actor plurality can have significant effects in "leveraging" the influence of financial industry groups, which are often able to tie in their interests with those of other private sector groups.
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Sample Selection Bias as a Specification Error
TL;DR: In this article, the bias that results from using non-randomly selected samples to estimate behavioral relationships as an ordinary specification error or "omitted variables" bias is discussed, and the asymptotic distribution of the estimator is derived.
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Law and Finance
Rafael La Porta,Rafael La Porta,Florencio Lopez de Silanes,Florencio Lopez de Silanes,Andrei Shleifer,Andrei Shleifer,Robert W. Vishny,Robert W. Vishny +7 more
TL;DR: This paper examined legal rules covering protection of corporate shareholders and creditors, the origin of these rules, and the quality of their enforcement in 49 countries and found that common law countries generally have the best, and French civil law countries the worst, legal protections of investors.
Journal ArticleDOI
Law and Finance
TL;DR: In this article, the authors examined legal rules covering protection of corporate shareholders and creditors, the origin of these rules, and the quality of their enforcement in 49 countries and found that common-law countries generally have the strongest, and French civil law countries the weakest, legal protections of investors, with German- and Scandinavian-civil law countries located in the middle.
Journal ArticleDOI
Legal Determinants of External Finance
TL;DR: The authors showed that countries with poorer investor protections, measured by both the character of legal rules and the quality of law enforcement, have smaller and narrower capital markets than those with stronger investor protections.
Posted Content
Aid, Policies, and Growth
TL;DR: Burnside and Dollar as mentioned in this paper used a new database on foreign aid to examine the relationships among foreign aid, economic policies, and growth of per capita GDP and found that aid has a positive impact on growth in developing countries with good fiscal, monetary, and trade policies.