http://hdl.handle.net/2451/31341 Search the Channel search http://archive.nyu.edu/simple-search http://hdl.handle.net/2451/31394 Title: Risk Sharing and Asset Prices: Evidence From a Natural Experiment<br/><br/>Henry, Peter; Chari, Anusha<br/><br/>Abstract: When countries liberalize their stock markets, firms that becomeeligible for foreign purchase (investible), experience an average stockprice revaluation of 15.1 percent. Since the historical covariance ofthe average investible firm&rsquo;s stock return with the local marketis roughly 200 times larger than its historical covariance with theworld market, liberalization reduces the systematic risk associated withholding investible securities. Consistent with this fact: (1) theaverage effect of the reduction in systematic risk is 6.8 percentagepoints, or roughly two fifths of the total revaluation; and (2) thefirm-specific revaluations are directly proportional to thefirm-specific changes in systematic risk. Fri, 29 Oct 2004 22:58:59 GMT http://hdl.handle.net/2451/31390 Title: Risk Sharing and Asset Prices: Evidence From a Natural Experiment<br/><br/>Henry, Peter; Chari, Anusha<br/><br/>Abstract: When countries liberalize their stock markets, firms that becomeeligible for foreign purchase (investible), experience an average stockprice revaluation of 15.1 percent. Since the historical covariance ofthe average investible firm&rsquo;s stock return with the local marketis roughly 200 times larger than its historical covariance with theworld market, liberalization reduces the systematic risk associated withholding investible securities. Consistent with this fact: (1) theaverage effect of the reduction in systematic risk is 6.8 percentagepoints, or roughly two fifths of the total revaluation; and (2) thefirm-specific revaluations are directly proportional to thefirm-specific changes in systematic risk. Fri, 29 Dec 2006 22:58:59 GMT http://hdl.handle.net/2451/31389 Title: Policy Watch Debt Relief<br/><br/>Henry, Peter; Arslanalp, Serkan Tue, 28 Nov 2006 22:58:59 GMT http://hdl.handle.net/2451/31388 Title: Is Disinflation Good for the Stock Market?<br/><br/>Henry, Peter<br/><br/>Abstract: The stock market appreciates by an average of 24 percent in real dollarterms when countries attempt to stabilize annual inflation rates thatare greater than 40 percent. In contrast, the average market response is0 when the pre-stabilization rate of inflation is less than 40 percent.These results suggest that the potential long-run benefits ofstabilization may dominate short-run costs at high levels of inflation,but at low to moderate levels of inflation, benefits may be offset bycosts in a present value sense. Stock market responses also help predictthe change in inflation and output in the year following all 81stabilization efforts. Fri, 29 Dec 2006 22:58:59 GMT http://hdl.handle.net/2451/31387 Title: Is Debt Relief Efficient?<br/><br/>Henry, Peter; Arslanalp, Serkan<br/><br/>Abstract: When developing countries announce debt relief agreements under theBrady Plan, their stock markets appreciate by an average of 60% in realdollar terms&mdash;a $42 billion increase in shareholder value. There isno significant stock market increase for a control group of countriesthat do not sign Brady agreements. The stock market appreciationssuccessfully forecast higher future resource transfers, investment andgrowth. Since the market capitalization of US commercial banks withdeveloping-country loan exposure also rises&mdash;by $13billion&mdash;the results suggest that both borrower and lenders canbenefit from debt relief when the borrower suffers from debt overhang. Fri, 29 Dec 2006 22:58:59 GMT http://hdl.handle.net/2451/31605 Title: Institutions vs. Policies: A Tale of Two Islands<br/><br/>Henry, Peter Blair; Miller, Conrad Tue, 28 Apr 2009 22:58:59 GMT http://hdl.handle.net/2451/31386 Title: Firm-Specific Information and the Efficiency of Investment<br/><br/>Henry, Peter; Chari, Anusha<br/><br/>Abstract: We use a new firm-level dataset to examine the efficiency of investmentin emerging economies. In the three-year period following stock marketliberalizations, the growth rate of the typical firm&rsquo;s capitalstock exceeds its pre-liberalization mean by an average of 5.4percentage points. Cross-sectional changes in investment aresignificantly correlated with the signals about fundamentals embedded inthe stock price changes that occur upon liberalization. Panel dataestimations show that a 1-percentage point increase in a firm&rsquo;sexpected future sales growth predicts a 4.1-percentage point increase inits investment; country-specific changes in the cost of capital predicta 2.3-percentage point increase in investment; firm-specific changes inrisk premia do not affect investment. Fri, 29 Dec 2006 22:58:59 GMT http://hdl.handle.net/2451/31385 Title: Domestic Capital Market Reform and Access to Global Finance: MakingMarkets Work<br/><br/>Henry, Peter; Lorentzen, Peter<br/><br/>Abstract: Contrary to the predictions of standard economic theory, capital marketliberalization has been a mixed blessing for many countries.Liberalization of debt inflows exposes economies to the risk of crisesstemming from sudden changes in investor sentiment. Equity marketliberalizations, on the other hand, have promoted growth in almost everyliberalizing country. Yet equity market liberalizations have not had asstrong an effect as might be expected. To convince outsiders to invest,countries must put in place laws and supporting institutions to protectthe rights of minority shareholders. Countries with such protectionstend to have larger, more efficient, and more stable stock markets thanthose that do not. Fri, 29 Dec 2006 22:58:59 GMT http://hdl.handle.net/2451/31391 Title: Do Stock Market Liberalizations Cause Investment Booms?<br/><br/>Henry, Peter<br/><br/>Abstract: Stock market liberalizations lead private investment booms. In a sampleof 11 developing countries that liberalized, 9 experience growth ratesof private investment above their non-liberalization median in the firstyear after liberalizing. In the second and third years afterliberalization this number is 10 of 11 and 8 of 11 respectively. Themean growth rate of private investment in the three years immediatelyfollowing stock market liberalization exceeds the sample mean by 22percentage points. The evidence stands in sharp contrast with recentwork that suggests capital account liberalization has no effect on investment. Fri, 29 Dec 2006 22:58:59 GMT http://hdl.handle.net/2451/31392 Title: Do Stock Market Liberalizations Cause Investment Booms?<br/><br/>Henry, Peter<br/><br/>Abstract: Stock market liberalizations lead private investment booms. In a sampleof 11 developing countries that liberalized their stock markets, 9experience growth rates of private investment above theirnon-liberalization median in the first year after liberalizing. In thesecond and third years after liberalization, this number is 10 of 11 and8 of 11, respectively. The mean growth rate of private investment in thethree years immediately following stock market liberalization exceedsthe sample mean by 22 percentage points. The evidence stands in sharpcontrast to recent work that suggests capital account liberalization hasno effect on investment. Wed, 29 Mar 2000 22:58:59 GMT http://hdl.handle.net/2451/31608 Title: Debt Relief<br/><br/>Arslanalp, Serkan; Henry, Peter B. Sat, 29 Oct 2005 22:58:59 GMT http://hdl.handle.net/2451/31384 Title: Commentary<br/><br/>Henry, Peter Sat, 28 Jun 2003 22:58:59 GMT http://hdl.handle.net/2451/31382 Title: Capital-Account Liberalization, the Cost of Capital, and Economic Growth<br/><br/>Henry, Peter Mon, 28 Apr 2003 22:58:59 GMT http://hdl.handle.net/2451/31604 Title: Capital Market Integration and Wages<br/><br/>Chari, Anusha; Henry, Peter Blair; Sasson, Diego<br/><br/>Abstract: For three years after the typical emerging economy opens its stockmarket to inflows of foreign capital, the average annual growth rate ofthe real wage in the manufacturing sector increases by a factor ofthree. No such increase occurs in a control group of countries that donot liberalize. The temporary increase in wage growth drives up thelevel of the average worker's annual compensation by US $487&mdash;anincrease equal to nearly one-fifth of their annual pre-liberalizationsalary. Overall, the results suggest that trade in capital may have alarger impact on wages than trade in goods. (JEL E25, E44, F16, F43,G18, O16) Thu, 29 Mar 2012 22:58:59 GMT http://hdl.handle.net/2451/31393 Title: Capital Account Liberalization: Theory, Evidence, and Speculation<br/><br/>Henry, Peter<br/><br/>Abstract: Writings on the macroeconomic impact of capital account liberalizationfind few, if any, robust effects of liberalization on real variables. Incontrast to the prevailing wisdom, I argue that the textbook theory ofliberalization holds up quite well to a critical reading of thisliterature. The lion&rsquo;s share of papers that find no effect ofliberalization on real variables tell us nothing about the empiricalvalidity of the theory, because they do not really test it. This paperexplains why it is that most studies do not really address the theorythey set out to test. It also discusses what is necessary to test thetheory and examines papers that have done so. Studies that actually testthe theory show that liberalization has significant effects on the costof capital, investment, and economic growth. Sun, 29 Oct 2006 22:58:59 GMT http://hdl.handle.net/2451/31606 Title: Capital Account Liberalization: Theory, Evidence and Speculation<br/><br/>Henry, Peter Blair<br/><br/>Abstract: Research on the macroeconomic impact of capital account liberalizationfinds few, if any, robust effects of liberalization on real variables.In contrast to the prevailing wisdom, I argue that the textbook theoryof liberalization holds up quite well to a critical reading of thisliterature. Most papers that find no effect of liberalization on realvariables tell us nothing about the empirical validity of the theorybecause they do not really test it. This paper explains why it is thatmost studies do not really address the theory they set out to test. Italso discusses what is necessary to test the theory and examines papersthat have done so. Studies that actually test the theory show thatliberalization has significant effects on the cost of capital,investment, and economic growth. Wed, 28 Nov 2007 22:58:59 GMT http://hdl.handle.net/2451/31383 Title: Capital Account Liberalization: Lessons for Chile Singapore Tradition Agreement<br/><br/>Henry, Peter Mon, 31 Mar 2003 22:58:59 GMT http://hdl.handle.net/2451/31381 Title: Capital Account Liberalization, the Cost of Capital, and Economic Growth<br/><br/>Henry, Peter Fri, 29 Dec 2006 22:58:59 GMT