Abstract:
The authors wish to thank Giacomo Nocera, Henri Servaes, and Angelo Russo and three anonymous referees for helpful comments and suggestions on earlier versions of this paper. The authors are grateful to the Centre for Applied Research in Finance (CAREFIN) of Bocconi University for providing financial support. Some of the work on this paper was completed while Giuliano Iannotta was visiting the Division of Research and Statistics of the Federal Reserve Board, whose hospitality is gratefully acknowledged. The views expressed in this paper are those of the authors and do not necessarily reflect those of the Board of Governors or members of its staff. All errors are those of the authors
