Essays in Finance and International Macroeconomics

Abstract

This dissertation is composed of three essays in finance and international macroeconomics, which share a common focus on financial stability, cross-border financial linkages, and frictions in the allocation of capital to firms. The first essay provides causal evidence that the distribution of ownership of financial assets across heterogeneous institutional investors is an important determinant of the magnitude of corporate bond fire sales over the credit cycle. Building upon these findings, the second essay documents how these fire sales ultimately impact firms’ financing outcomes and real investment. The third essay examines the role of tax havens in the global financial system, by assessing the degree to which corporate securities issuance in tax havens distorts our understanding of patterns of global investment.