In partnership with the Journal of Economic Behavior & Organization

2016 International Conference on Financial Development and Economic Stability

29-30 September 2016

Durham University Business School Mill Hill Lane, Durham, DH1 3LB, UK

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The Program at a Glance

Thursday, September 29, 2016 12:00 - 13:30 Welcome Lunch & Registration 13:30 - 14:00 Welcome and Opening Remarks Welcome notes Room 405

Muhammed-Shahid Ebrahim, Professor of Islamic Finance, Durham University Business School, Conference Co-Chair Mark Learmonth, Professor of Organisation Studies & Deputy Dean of Durham University Business School Duc Khuong Nguyen, Professor of Finance & Deputy Director for Research, IPAG Business School, Conference Co-Chair Yildiray Yildirim, Zicklin School of Business, Baruch College, CUNY, Conference Co-Chair 14:00 - 15:00 Keynote Address Systemic Risk, Financial Stability and Economic Growth in Emerging Economies

Room 405

Guest Speaker: Professor Franklin Allen, Imperial College London, United Kingdom Chair: Yildiray Yildirim, Zicklin School of Business, Baruch College, CUNY 15:00 – 15:30 Coffee Break 15:30- 17:00 Parallel Sessions A A1. Financial Development & Growth I Room 452 Chair: Douglas Cumming, York University, Schulich School of Business, Canada A2. Access to Financial Services I Room 453 Chair: Joseph P. Joyce, Wellesley College, United States 17:00 - 17:30 Coffee Break 17:30 - 19:00 Parallel Sessions B B1. Financial Development & Growth II Room 452 Chair: Pierluigi Murro, Lumsa University, Italy B2. Access to Financial Services II Room 453 Chair: Rafal M. Wojakowski, University of Surrey, United Kingdom 19:00 - 23:00 Conference Dinner

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Friday, September 30, 2016 08:30 - 09:00 Registration & Coffee 09:00 - 10:30 Parallel Sessions C C1. Financial Development & Growth III Room 452 Chair: Vittoria Cerasi, Bicocca University, Italy C2. Financial Intermediation Room 453 Chair: Zuzana Fungáčová, Bank of Finland, Finland 10:30 - 11:00 Coffee Break 11:00 - 12:00 Keynote Address Finance, Growth and Stability Room 405 Guest Speaker: Professor Thorsten Beck, Cass Business School, United Kingdom Chair: Duc Khuong Nguyen, IPAG Business School, France 12:00 - 13:30 Lunch Break 13:30 - 15:30 Parallel Sessions D D1. Financial Development & Growth IV Room 452 Chairs: Thorsten Beck, Cass Business School, City University London, United Kingdom & Meryem Duygun, University of Nottingham, United Kingdom D2: Financial Development and Pricing Room Paris, 2nd Floor Chair: Elnaz Bajoori, University of Bath, United Kingdom 15:30 - 15:30 Closing

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The Program in Detail

Thursday, September 29, 2016 12:00 - 13:30 Welcome Lunch & Registration 13:30 - 14:00 Opening Remarks Room: 405

Muhammed-Shahid Ebrahim, Professor of Islamic Finance, Durham University Business School, Conference Co-Chair Mark Learmonth, Professor of Organisation Studies & Deputy Dean of Durham University Business School Duc Khuong Nguyen, Professor of Finance & Deputy Director for Research, IPAG Business School, Conference Co-Chair Yildiray Yildirim, Zicklin School of Business, Baruch College, CUNY, Conference Co-Chair

14:00 - 15:00 Keynote Address Room: 405 Topic: Systemic Risk, Financial Stability and Economic Growth in Emerging

Economies Guest Speaker: Professor Franklin Allen, Imperial College London, United Kingdom Chair: Yildiray Yildirim, Zicklin School of Business, Baruch College, CUNY, United States

15:00 - 15:30 Coffee Break 15:30 - 17:00 Parallel Sessions (A) A1. Financial Development & Growth I Room 452 Chair: Douglas Cumming, York University, Schulich School of Business, Canada Financial inclusion, informal finance, and saving behaviour: An empirical investigation on Chinese households Authors: Alessandra Guariglia (University of Birmingham, United Kingdom), Nicholas Horsewood (University of Birmingham, United Kingdom), Danying Li (University of Birmingham, United Kingdom) Discussant: Sushanta Mallick, Queen Mary University of London, United Kingdom Is financial inclusion good for bank stability? International evidence Authors: M. Mostak Ahamed (Queen Mary University of London, United Kingdom), Sushanta Mallick (Queen Mary University of London, United Kingdom) Discussant: Douglas Cumming, York University, Schulich School of Business, Canada Privatization, state ownership and corporate efficiency: Evidence from China Authors: Jerry Cao (Lingnan College, Sun Yat-Sen University, China), Douglas Cumming (York University, Schulich School of Business, Canada), Sili Zhou (Singapore Management University, Singapore), Sili Zhou (Nanyang Technological University, Singapore) Discussant: Danying Li, University of Birmingham, United Kingdom

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A2. Access to Financial Services I Room 453 Chair: Joseph P. Joyce, Wellesley College, United States Market regulation and private equity placements in China Authors: Nathan Dong (Columbia University, United States), Ming Gu (Renmin University of China, China), Hua He (Cheung Kong Graduate School of Business, China) Discussant: Nicola Limodio, London School of Economics, United Kingdom Deposit volatility and long-term investment: Evidence from a natural experiment in Pakistan Authors: M. Ali Choudhary (State Bank of Pakistan, Pakistan), Nicola Limodio (London School of Economics, United Kingdom) Discussant: M. Shahid Ebrahim, Durham University Business School, United Kingdom Partners, not debtors: The external liabilities of emerging market economies Authors: Joseph P. Joyce (Wellesley College, United States) Discussant: Nathan Dong, Columbia University, United States 17:00 - 17:30 Coffee Break 17:30 - 19:00 Parallel Sessions (B) B1. Financial Development & Growth II Room 452 Chair: Pierluigi Murro, Lumsa University, Italy Impact of political stability and property rights protection on oil and gas investments: A cross-country analysis Authors: Kristine Skjong Bøe (Norwegian University of Science and Technology, Norway), Therese Jordal (Norwegian University of Science and Technology, Norway), Stěpán Mikula (Masaryk University, Czech Republic), Peter Molnár (University of Stavanger, Norway) Discussant: Silvio Contessi, Monash Business School, Davis, Australia Financial choice and international trade Authors: Il-Hyun Cho (University of California, Davis, United States), Silvio Contessi (Monash Business School, Davis, Australia), Katheryn N. Russ (University of California, Davis and NBER, United States), Diego Valderrama (Franklin Templeton Investments, United States) Discussant: Pierluigi Murro, Lumsa University, Italy Banking development, economic structure and income inequality Authors: Alexandra D’Onofrio (Luiss University, Italy), Raoul Minetti (Michigan State University, United States), Pierluigi Murro (Lumsa University, Italy) Discussant: Peter Molnár, University of Stavanger, Norway B2. Access to Financial Services II Room 453 Chair: Rafal M. Wojakowski, University of Surrey, United Kingdom Financial exclusion and stability in MENA: Evidence from poverty and inequality Authors: Simon Neaime (American University of Beirut, Lebanon), Isabelle Gaysset (American University of Beirut, Lebanon) Discussant: Carolina Laureti, Université Libre de Bruxelles, Belgium Flexible microfinance products to cope with shocks: Evidence from SafeSave

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Authors: Alain de Janvry (University of California at Berkeley, United States), Carolina Laureti (Université Libre de Bruxelles, Belgium), Elisabeth Sadoulet (University of California at Berkeley, United States) Discussant: Rafal M. Wojakowski, University of Surrey, United Kingdom A systemic approach to home loans: Continuous workouts v.s. fixed rate contracts Authors: Robert J. Shiller (Yale University, United States), Rafal M. Wojakowski (University of Surrey, United Kingdom), M. Shahid Ebrahim (Durham University Business School, United Kingdom), Mark B. Shackleton (Lancaster University Management School, United Kingdom) Discussant: Simon Neaime, American University of Beirut, Lebanon 19:00 - 23:00 Conference Dinner

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Friday, September 30, 2016 08:30 - 09:00 Registration & Coffee 09:00 - 10:30 Parallel Sessions (C) C1. Financial Development & Growth III Room 452 Chair: Vittoria Cerasi, Bicocca University, Italy Bankruptcy and cross-country differences in productivity Authors: Julian Neira (University of Exeter Business School, United Kingdom) Discussant: M. Shahid Ebrahim, Durham University, United Kingdom Agency costs, financial contracting and the Muslim world Authors: M. Shahid Ebrahim (Durham University, United Kingdom), Aziz Jaafar (Bangor University, United Kingdom), Philip Molyneux (Bangor University, United Kingdom), Murizah Salleh (Bank Negara, Malaysia) Discussant: Vittoria Cerasi, Bicocca University, Italy Do your rivals enhance your access to credit? Theory and evidence Authors: Vittoria Cerasi (Bicocca University, Italy), Alessandro Fedele (Free University of Bozen, Italy), Raffaele Miniaci (University of Brescia, Italy) Discussant: Julian Neira, University of Exeter Business School, United Kingdom C2. Financial Intermediation Room 453 Chair: Zuzana Fungáčová, Bank of Finland, Finland A model of securitization when bank optimism and liquidity matter Authors: Rui-hui Xu (University of, Macau), Rose Neng Lai (University of Macau, Macau) Discussant: Lin Hu, Australia National University, Australia Outside market and inside supervision: On the design of optimal supervision mechanism Authors: Lin Hu (Australia National University, Australia), Zhenhua Wu (Nanjing University, China) Discussant: Zuzana Fungáčová, Bank of Finland, Finland Trust in banks Authors: Zuzana Fungáčová (Bank of Finland, Finland), Iftekhar Hasan (Fordham University, United States & Bank of Finland, Finland), Laurent Weill (EM Strasbourg Business School, University of Strasbourg, France) Discussant: Rui-hui Xu, University of Macau, Macau 10:30 - 11:00 Coffee Break 11:00 - 12:00 Keynote Address Room: 405 Topic: Finance, Growth and Stability

Guest Speaker: Professor Thorsten Beck, Cass Business School, United Kingdom Chair: Duc Khuong Nguyen, IPAG Business School, France

12:00 - 13:30 Lunch Break 13:30 - 15:30 Parallel Sessions (D)

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D1. Financial Development & Growth IV Room 452 Chairs: Thorsten Beck, Cass Business School, City University London, United Kingdom & Meryem Duygun, University of Nottingham, United Kingdom Do Islamic banks contribute to risk sharing? Authors: Thorsten Beck (Cass Business School, City University London, United Kingdom), Zamir Iqbal (The World Bank, United States), Rasim Mutlu (The World Bank, United States) Discussant: Claudia R. Williamson, Mississippi State University, United States Trust, regulation and contracting institutions Authors: Brandon N. Cline (Mississippi State University, United States), Claudia R. Williamson (Mississippi State University, United States) Discussant: Thorsten Beck, Cass Business School, City University London, United Kingdom Do financial factors drive aggregate productivity? Evidence from Indian manufacturing establishments Authors: N. Aaron Pancost (University of Chicago Booth School of Business, United States) Discussant: Meryem Duygun, University of Nottingham, United Kingdom Does too much transparency promote financial development? Authors: Siong Hook Law (Universiti Putra Malaysia, Malaysia), Meryem Duygun (University of Nottingham, United Kingdom), Mohamed Shaban (University of Sheffield, United Kingdom), Chee Hung Ng (Multimedia Unversity, Mlaysia) Discussant: N. Aaron Pancost (University of Chicago Booth School of Business, United States) D2: Financial Development and Pricing Room Paris, 2nd Floor Chair: Elnaz Bajoori, University of Bath, United Kingdom The walking debt crisis Authors: Christoph Wegener (IPAG Business School, France), Robinson Kruse (University of Groningen, Netherlands & School of Economics and Management, University of Aarhus, Denmark), Tobias Basse (Norddeutsche Landesbank Girozentrale & Touro College Berlin, Germany) Discussant: Kym Brown, Monash University, Australia Inter-relationships within the financial system: Banks, stocks, bonds and insurance Authors: Yen Nguyen (St. Francis Xavier University, Canada), Kym Brown (Monash University, Australia), Michael Skully (Monash University, Australia), Katherine Avram (Monash University, Australia) Discussant: Christoph Wegener, IPAG Business School, France Manufacturing and services growth in developing economies: “Too little” finance? Authors: Sarah Lynne Salvador Daway (University of the Philippines School of Economics, Philippines), Maria Socorro Gochoco-Bautista (University of the Philippines School of Economics, Philippines) Discussant: Elnaz Bajoori, University of Bath, United Kingdomstered pricing in the corporate loan market: Theory and empirical evidence Authors: Elnaz Bajoori (University of Bath, United Kingdom), Sajid Chaudhry (Birmingham Business School, University of Birmingham, United Kingdom), Shasi Nandeibam (University of Bath, United Kingdom) Discussant: Sarah Lynne Salvador Daway, University of the Philippines School of Economics, Philippines

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List of Participants First Name Last Name Organisation A Franklin Allen Imperial College London, United Kingdom B Elnaz Bajoori University of Bath, United Kingdom Thorsten Beck Cass Business School, United Kingdom Stelios Bekiros European University Institute, Italy & AUEB, Greece Kym Brown Monash University, Australia C Vittoria Cerasi Bicocca University, Italy Sajid Chaudhry University of Birmingham, United Kingdom Brandon Cline Mississippi State University, United States Silvio Contessi Monash Business School, Australia Douglas Cumming York University, Schulich School of Business, Canada D Sarah Lynne Daway University of the Philippines School of Economics, Philippines Nathan Dong Columbia University, United States Meryem Duygun University of Nottingham, United Kingdom E Muhammed-Shahid Ebrahim Durham University Business School, United Kingdom F Zuzana Fungacova Bank of Finland H Lin Hu Australia National University, Australia J Joseph Joyce Wellesley College, United States L Carolina Laureti Université libre de Bruxelles, Belgium Mark Learmonth Durham University Business School, United Kingdom Danying Li University of Birmingham, United Kingdom Nicola Limodio London School of Economics, United Kingdom M Sushanta Mallick Queen Mary University of London, United Kingdom Anthony Miller Durham University, United Kingdom Peter Molnar University of Stavanger Pierluigi Murro N Simon Neaime American University of Beirut, Lebanon Julian Neira University of Exeter, United Kingdom Duc Khuong Nguyen IPAG Business School, France P N. Aaron Pancost University of Chicago, United States S

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Mohamed Shaban University of Sheffield, United Kingdom R Hatem Rjiba IPAG Business School, France W Christoph Wegener IPAG Business School, France Julian Williams Durham University, United Kingdom Claudia Williamson Mississippi State University, United States Zhenhua Wu Nanjing University, China X Ruihui Xu University of Macau, Macau Y Ayse Yazici Durham University, United Kingdom Yildiray Yildirim Zicklin School of Business, Baruch College, CUNY, United States