Palazzo, Guido and Rethel, Lena. (2008) Conflicts of interest in financial intermediation. Journal of Business Ethics, Volume 81 (Number 1). pp. 193-207. ISSN 0167-4544

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Abstract

The last years have seen a surge of scandals in financial intermediation. This article argues that the agency structure inherent to most forms of financial intermediation gives rise to conflicts of interest. Though this does not excuse scandalous behavior it points out market imperfections. There are four types of conflicts of interest: personal-individual, personal-organizational, impersonal-individual, and finally, impersonal-organizational conflicts. Analyzing recent scandals we find that all four types of conflicts of interest prevail in financial intermediation.

Item Type:	Journal Article
Subjects:	B Philosophy. Psychology. Religion > BJ Ethics H Social Sciences > HG Finance
Divisions:	Faculty of Social Sciences > Politics and International Studies
Library of Congress Subject Headings (LCSH):	Intermediation (Finance), Conflict of interests, Agency (Law)
Journal or Publication Title:	Journal of Business Ethics
Publisher:	Springer Netherlands
ISSN:	0167-4544
Date:	August 2008
Volume:	Volume 81
Number:	Number 1
Number of Pages:	15
Page Range:	pp. 193-207
Identification Number:	10.1007/s10551-007-9488-z
Status:	Peer Reviewed
Publication Status:	Published
Access rights to Published version:	Restricted or Subscription Access
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URI:	http://wrap.warwick.ac.uk/id/eprint/29839

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