In this paper, I analyze a simple financial contracting problem between a riskneutral financial intermediary and a risk-averse household, where the household receives an endowment that grows over time, and is unable to commit to the contract. I argue that in this environment, the presence of uncertainty in the household’s endowment may improve the household’s welfare by relaxing its commitment ...

This article explores online social lending, an innovative venture that represents a reintermediation in financial services. Borrowers and lenders now have access to online financial information services such as Motley Fool, http://www.fool.com/ , and the opportunity to communicate directly with each other online, sharing user-generated content, in the spirit of Web 2.0. In this environment, ne...

This paper evaluates (1) whether the exogenous component of "nancial intermediary development in#uences economic growth and (2) whether cross-country di!erences in legal and accounting systems (e.g., creditor rights, contract enforcement, and accounting standards) explain di!erences in the level of "nancial development. Using both traditional cross-section, instrumental variable procedures and ...

Advances in telecommunication networks, and, in particular, the Internet have transformed the economic landscape for financial decision-making. In this paper, we focus on financial networks with electronic transactions and with different tiers of decision-makers and we develop an integrated framework for the modeling, analysis, and computation of solutions to such problems. Specifically, we con...

In a variety of economies, recent years have witnessed prominent alterations in the regulatory framework under which financial systems operate. Most notable among these alterations are the host of revisions to the regulatory framework faced by financial intermediaries such as banks. From a theoretical perspective, this paper assesses the potential impact of regulatory policy on macroeconomic ag...

Partial results of an investigation into the business value of Information Systems/Information Technology (IS/IT) investments in the Financial Services Sectors (FSS) in Australia are presented. Using Case Study methodology to develop and refine a conceptual model of the relationship between IS/IT investment and organisational performance. The preliminary results from a Credit Union case reporte...

We extend a standard, rational expectation model of trade to incorporate the possibility of individual investors delegating their trades to an informed financial intermediary. In the presence of delegated trade, we show that a firm׳s risk premium is a function of both the firm׳s exposure to a common risk factor and idiosyncratic characteristics of the firm׳s information environment. We show tha...