IDEAS home Printed from https://ideas.repec.org/a/eee/eurman/v22y2004i4p361-376.html
   My bibliography  Save this article

Conflicts of Interest and Market Discipline Among Financial Service Firms

Author

Listed:
  • Walter, Ingo

Abstract

Very recent reports on Maxwell Communications Corporation and Enron clearly underlined a single important weakness in the behaviour of corporations and financial markets -- the exploitation of conflicts of interest. Although potential conflicts of interest are a fact of life among financial firms, they can only come to flower when competition is not perfect and when markets are not fully transparent. Since underlying market imperfections are systematic even in highly developed financial systems, causing agency problems, it is essential that the problem of conflict-of-interest exploitation is addressed through improved transparency and market discipline if public confidence in financial markets is not to be repeatedly shaken. This paper explores conflicts of interest in wholesale and retail financial markets, and in financial firms. It reviews existing regulatory measures and rating agencies as well as internal controls, and recommends strengthening of measures to prevent conflict exploitation.

Suggested Citation

  • Walter, Ingo, 2004. "Conflicts of Interest and Market Discipline Among Financial Service Firms," European Management Journal, Elsevier, vol. 22(4), pages 361-376, August.
    • Handle: RePEc:eee:eurman:v:22:y:2004:i:4:p:361-376
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0263237304000623
    Download Restriction: Full text for ScienceDirect subscribers only
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Grote, Michael H. & Täube, Florian A., 2007. "When outsourcing is not an option: International relocation of investment bank research -- Or isn't it?," Journal of International Management, Elsevier, vol. 13(1), pages 57-77, March.
    2. Tajudeen Olalekan Yusuf, 2011. "Brokers' incentives and conflicts of interest in the control of opportunism," Journal of Risk Finance, Emerald Group Publishing, vol. 12(3), pages 168-181, May.
    3. Carmen Pilar Martí Ballester, 2020. "Does Concurrent Management of Mutual Funds and Pension Plans Create Conflicts of Interest?," Ensayos de Economía 18307, Universidad Nacional de Colombia Sede Medellín.
    4. Reurink, Arjan, 2016. "Financial fraud: A literature review," MPIfG Discussion Paper 16/5, Max Planck Institute for the Study of Societies.
    5. De Manuel, Mirzha & Valiante, Diego, 2014. "A Life Cycle Approach to Investor Protection," ECMI Papers 9619, Centre for European Policy Studies.
    6. Daniela Venanzi, 2021. "Large Is Riskier: The Case of European Commercial Banks," International Journal of Business and Management, Canadian Center of Science and Education, vol. 16(1), pages 1-19, August.
    7. Daniela Venanzi, 2019. "Da che dipende il rischio delle banche? Il beta fondamentale delle banche europee (What does banks' riskiness depend on? The fundamental beta of Europe's banks)," Moneta e Credito, Economia civile, vol. 72(286), pages 105-131.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:eurman:v:22:y:2004:i:4:p:361-376. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/wps/find/journaldescription.cws_home/115/description#description .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.