Costs of the Information Advantage of Financial Intermediaries
2019-12-06T09:11:35Z (GMT) by
As delegated monitors on behalf of investors, financial intermediaries minimize the cost of monitoring, which helps to resolve incentive problems between borrowers and lenders. However, the resulting information advantage of the intermediary creates new challenges. This thesis empirically investigates adverse effects of the information advantage of financial intermediaries, by combining finance research with historical research.