Acknowledgments

We thank four anonymous referees for their comments and suggestions. Many thanks are due in particular to Andy Berg, Catherine Pattillo, and Eduardo Borensztein for sharing their data set and for discussion of the results; Stijn Claessens for advice on the corporate sector and legal indicators; and Ydahlia Metzgen and Scott Brown for their comments and support of this project. We would also like to thank the participants at various seminars and conferences—including at the International Monetary Fund, the University of Illinois at Urbana-Champaign, the University of Oxford, the University of Birmingham, the University of Porto, the Technical University of Lisbon, the University of Rome “Tor Vergata”, the University of Rennes, and the Budapest University of Technology and Economics—for their comments. The views expressed in this article are those of the authors and do not necessarily represent those of the institutions they are affiliated with. The usual disclaimers apply.