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Williams, T., 2018. Capital inflows, sovereign debt and bank lending: Micro-evidence from an emerging market. Review of Financial Studies 31, 4958–4994. Figure 1: Stock Prices around Events 99 100 101 102 103 Price (normalized) -7 0 7 14 21 Days to/from Announcement Date Financial Government-related Tradable Note: This figure depicts the evolution of the stock prices of financial firms, government-related firms, and firms operating in tradable sectors, separately, over a time window which starts 7 days before the announcement of each country’s inclusion in the corresponding index, and ends 14 days after it. Stock prices are normalized to their values in the last trading day before each announcement episode, indicated by a vertical dashed line. Observations in the top and the bottom percentile of the country-by-date distribution of stock prices are excluded.