Asymmetric Information in Financial Markets Introduction and Applications [Paperback]

Examination of the features and implications of asymmetric information in financial markets.Within the economist's abstraction of a 'Perfect Market' it is assumed that all agents have access to the same timely, accurate and free information, and as a result allocative efficiency will be achieved. In practice this rarely happens and in most cases agents have access to different levels of information so that transactions are characterised by asymmetric information. This book presents the first integrated treatment of asymmetric information as both a macroeconomic and microeconomic phenomenon in financial markets. The intended audience is students in banking and finance.Within the economist's abstraction of a 'Perfect Market' it is assumed that all agents have access to the same timely, accurate and free information, and as a result allocative efficiency will be achieved. In practice this rarely happens and in most cases agents have access to different levels of information so that transactions are characterised by asymmetric information. This book presents the first integrated treatment of asymmetric information as both a macroeconomic and microeconomic phenomenon in financial markets. The intended audience is students in banking and finance.Within the economist's abstraction of a Perfect Market it is assumed that all agents have access to the same timely, accurate and free information, and as a result allocative efficiency will be achieved. In practice this rarely happens and in most cases agents have access to different levels of information so that transactions are characterized by asymmetric information. This book presents the first integrated treatment of asymmetric information as both a macroeconomic and microeconomic phenomenon in financial markets.Part I. Conceptual Foundations: 1. An introduction to asymmetric information problems in financial markets; 2. Protective mechanisms against asymmetric information; Part II. Applications To Corporate Finance: 3. Inlƒg