Conflicts of interest in financial intermediation
Conflicts of interest in financial intermediation
The last years have seen a surge of scandals in financial intermediation. This article argues that the agency structure inherent to most forms of financial intermediation gives rise to conflicts of interest. Though this does not excuse scandalous behavior it points out market imperfections. There are four types of conflicts of interest: personal-individual, personal-organizational, impersonal-individual, and finally, impersonal-organizational conflicts. Analyzing recent scandals we find that all four types of conflicts of interest prevail in financial intermediation.
financial intermediation, conflict of interests, principal-agent theory
193-207
Palazzo, Guido
465f984e-09f8-4e62-b363-78081f74d0af
Rethel, Lena
432c7384-5206-48d4-89dc-34544884e43e
August 2008
Palazzo, Guido
465f984e-09f8-4e62-b363-78081f74d0af
Rethel, Lena
432c7384-5206-48d4-89dc-34544884e43e
Palazzo, Guido and Rethel, Lena
(2008)
Conflicts of interest in financial intermediation.
Journal of Business Ethics, 81 (1), .
(doi:10.1007/s10551-007-9488-z).
Abstract
The last years have seen a surge of scandals in financial intermediation. This article argues that the agency structure inherent to most forms of financial intermediation gives rise to conflicts of interest. Though this does not excuse scandalous behavior it points out market imperfections. There are four types of conflicts of interest: personal-individual, personal-organizational, impersonal-individual, and finally, impersonal-organizational conflicts. Analyzing recent scandals we find that all four types of conflicts of interest prevail in financial intermediation.
This record has no associated files available for download.
More information
e-pub ahead of print date: 14 July 2007
Published date: August 2008
Keywords:
financial intermediation, conflict of interests, principal-agent theory
Identifiers
Local EPrints ID: 151725
URI: http://eprints.soton.ac.uk/id/eprint/151725
ISSN: 0167-4544
PURE UUID: eaed4728-6722-4114-9b19-215708475605
Catalogue record
Date deposited: 12 May 2010 10:20
Last modified: 14 Mar 2024 01:20
Export record
Altmetrics
Contributors
Author:
Guido Palazzo
Author:
Lena Rethel
Download statistics
Downloads from ePrints over the past year. Other digital versions may also be available to download e.g. from the publisher's website.
View more statistics