TY - BOOK ID - 137133964 TI - What Explains Stock Markets' Vulnerability to the 2007-2008 Crisis ? AU - Love, Inessa AU - Didier, Tatiana AU - Peria, Maria Soledad Martinez PY - 2010 PB - Washington, D.C., The World Bank, DB - UniCat KW - Asset values KW - Banking assets KW - Capital flows KW - Debt Markets KW - Developing countries KW - Economic Theory & Research KW - Emerging Markets KW - Emerging markets KW - Equity holdings KW - Finance and Financial Sector Development KW - Financial crisis KW - Financial institutions KW - Financial markets KW - Housing finance KW - International bank KW - Macroeconomics and Economic Growth KW - Market data KW - Market returns KW - Markets and Market Access KW - Mutual Funds KW - Private Sector Development KW - Residential mortgages KW - Returns KW - Stock market KW - Stock market index KW - Stock markets KW - Stock returns KW - Total debt UR - https://www.unicat.be/uniCat?func=search&query=sysid:137133964 AB - This paper examines the determinants of stock markets' vulnerability to the 2007-2008 crisis. Given that the United States (US) was the crisis epicenter, the authors analyze the factors driving the co-movement between US returns and stock returns in 83 countries. The analysis distinguishes between the period before and after the collapse of Lehman Brothers. The findings indicate that the main channel of transmission was financial. There is also evidence of a "wake-up call" or "demonstration effect" in the first stage of the crisis, because countries with vulnerable banking and corporate sectors exhibited higher co-movement with the US market. However, despite a collapse in trade across countries, the analysis does not find support for this channel of transmission. ER -