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The second-generation informational problem in the financial markets

Author

Listed:
  • Jadwiga Glanc

    (Jagiellonian University)

  • Piotr Osiewacz

    (Jagiellonian University)

Abstract

This article deals with a new informational problem in the financial markets and shows how increasing reliance on standardized sources of information (rating agencies, financial media, journals etc.) can potentially lead to crises. It examines the way in which the problem of information on the markets has changed — partly as a result of current legal frames on disclosure and information obligation. Furthermore, it links the phenomenon of increasing reliance on information sources to the current problems and deficiencies of investment decisions. The analysis examines the standard legal responses of the financial markets in order to search for a viable solution to the problem of market deficiencies in this regard. Attention is drawn to a serious flaw in the financial markets and to an increasing shift of power towards private information-supplying entities, all of which could lead to disruptions of financial stability in the future.

Suggested Citation

  • Jadwiga Glanc & Piotr Osiewacz, 2015. "The second-generation informational problem in the financial markets," Ekonomia i Prawo, Uniwersytet Mikolaja Kopernika, vol. 14(3), pages 341-350, September.
    • Handle: RePEc:cpn:umkeip:v:14:y:2015:i:3:p:341-350
    DOI: 10.12775/EiP.2015.022
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    References listed on IDEAS

    as
    1. Susan Schroeder, 2013. "A Template for a Public Credit Rating Agency," Journal of Economic Issues, Taylor & Francis Journals, vol. 47(2), pages 343-350.
    2. Robert B. Thompson, 2014. "Financial Regulation’s Architecture within International Economic Law," Journal of International Economic Law, Oxford University Press, vol. 17(4), pages 807-822.
    3. Healy, Paul M. & Palepu, Krishna G., 2001. "Information asymmetry, corporate disclosure, and the capital markets: A review of the empirical disclosure literature," Journal of Accounting and Economics, Elsevier, vol. 31(1-3), pages 405-440, September.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    financial markets; financial crises; sources of market information; financial media;
    All these keywords.

    JEL classification:

    • G01 - Financial Economics - - General - - - Financial Crises
    • G14 - Financial Economics - - General Financial Markets - - - Information and Market Efficiency; Event Studies; Insider Trading
    • G15 - Financial Economics - - General Financial Markets - - - International Financial Markets
    • G28 - Financial Economics - - Financial Institutions and Services - - - Government Policy and Regulation

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