INFORMATIONAL ASYMMETRIES, FINANCIAL STRUCTURE, AND FINANCIAL INTERMEDIATION

19774,075 citationsJournal Articlebronze Open Access

Authors

Richard A. Brealey · London Business School

Abstract

NUMEROUS MARKETS ARE characterized by informational differences between buyers and sellers. In financial markets, informational asymmetries are particularly pronounced. Borrowers typically know their collateral, industriousness, and moral rectitude better than do lenders; entrepreneurs possess "inside" information about their own projects for which they seek financing.

Topics & Keywords

Fiscal Policy and Economic Growth Housing Market and Economics Financial Literacy, Pension, Retirement Analysis

UN Sustainable Development Goals

Decent work and economic growth

Publication Details

Published in: The Journal of Finance

Volume 32, Issue 2, pp. 371-387

DOI: 10.1111/j.1540-6261.1977.tb03277.x

Field-Weighted Citation Impact: 36.89