Contents -- I. Introduction -- II. Specification and Key Variables -- A. Basic Specification -- B. Key Data -- III. Empirical Analysis -- A. The Extent of Financial Constraint -- B. The Role of Pre-crisis Exposure to International Finance -- Conclusion -- Tables -- 1. Average Change of Stock Price(log) -- 2a. Summary Statistics -- 2b. Correlation of Variables -- 3. The Average Effect of Liquidity Crunch Across Countries -- 4. Pre-Crisis Exposure to Capital Inflows -- 5. Role of Pre-Crisis Exposure to Capital Inflows in Emerging Economies (Volume Effect) -- 6. Role of Pre-Crisis Exposure to Capital Inflows in Emerging Economies (Composition Effect) -- 7. Role of Pre-Crisis Exposure to Capital Inflows (Robusiness Checks) -- 8. Role of Pre-Crisis Exposure to Capital Inflows (More Robustness Checks) -- 9. Role of Pre-Crisis Exposure to Capital Inflows in Emerging Economies (Non-financial firms) -- 10. Placebo Test -- 11. Stock Returns Around Lehman Brothers Bankruptcy -- Figures -- 1. Capital Flow to Emerging Economies -- 2. The Extent of Capital Reversal versus the Initial Share of FDI in Capital Flows -- 3. Change in Log Banking Stock Prices vs Pre-Crisis International Bank Loans -- Appendix -- 1. De Jure Financial Openness for Year 2006 -- References.