International debt financing is important for the development of emerging economies, as it gives firms from emerging markets (EMs) access to greater liquidity, a wider investor base and more effective laws and regulations. However, the financial crisis in the late 1990s, coupled with recent...

“Everybody talks about financial innovation, but (almost) nobody empirically tests hypotheses about it” Frame and White (2004).The financial turmoil from 2007 onwards has spurred renewed debates on the “bright” and “dark” sides of financial innovation. Using bank-, industry- and...