How do Financial Intermediaries Create Value in Security Issues?
(2013)
Journal Article
Adriani, F., Deidda, L., & Sonderegger, S. (2014). How do Financial Intermediaries Create Value in Security Issues?. Review of Finance, 18(5), 1915-1951. https://doi.org/10.1093/rof/rft027
We study incentive provision in a model of securities issuance with an informed issuer and uninformed investors. We show that the presence of an informed intermediary may increase surplus even if we allow for collusion between the intermediary and th... Read More about How do Financial Intermediaries Create Value in Security Issues?.