search query: @indexterm RISK BEHAVIOUR / total: 47
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| Author: | Vesala, T. |
| Title: | Financial matching, asymmetric information and entrepreneurial risk taking |
| Journal: | Scandinavian Journal of Economics
2007 : VOL. 109:3, p. 469-485 |
| Index terms: | asymmetric information credit markets liquidity matching problem risk behaviour |
| Language: | eng |
| Abstract: | The financial matching in credit markets is investigated in a situation in which the entrepreneurs have private information about their success potential. Financing is searched for either a "risky" or a "safe" investment. The entrepreneurs' intrinsic characteristics affect only the risky project, and therefore, the entrepreneurs with inefficiently low success probabilities opt for the risky investment. The analysis shows that steady states with greater market liquidity, which reflects the intensity of competition among financiers, are related to higher efficiency in this setup. |
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