ISSN: 2450-7741
eISSN: 2300-4460
OAI
DOI: 10.18276/frfu.2016.4.82/1-57
Issue archive /
4/2016
Asymmetry in the Relationship between Enterprises and Financial Institutions
| Authors: | Jacek Nowak |
| Keywords: | the asymmetry of information the relationship between a company and a financial institution |
| Data publikacji całości: | 2016 |
| Page range: | 7 (691-697) |
Abstract
The asymmetry of information is a phenomenon of many business entities. It is also an important element of the relationship between the company and the financial institution. The aim of the paper is to draw attention to the asymmetrical relationship of entities in the context of a relationship where both parties do not have equal opportunities and power. The resulting inequality is the result of an imbalance between the two parties to the contract or transaction, creating a basis for achieving the advantage of one party and consequently the possibility to generate a positive result on one side only.
Download file
Article file
Bibliography
| 1. | Jajuga K., Jajuga T. (1998). Inwestycje, instrumenty finansowe, ryzyko finansowe, inżynieria finansowa. Warszawa: Wydawnictwo Naukowe PWN. |
| 2. | Modigliani F., Miller M. (1958). The cost of capital, corporation finance and the theory of investment. American Economic Review, 48. |
| 3. | Ricardo N.B. (2003). Asymmetric Information in Financial Markets: Introduction and Applications. Cambridge University Press. |
| 4. | Jensen M.C., Meckling W.H. (1976). The theory of the firm: managerial behavior agency costs and ownership structure. Journal of Financial Economics. |
| 5. | Ross S.A. (1977). The determination of financial structure: the incentive signaling approach. Bell Journal of Economics, 8, 675–692. |